N.J. Admin. Code § 17:16-12.4

Current through Register Vol. 56, No. 24, December 18, 2024

Section 17:16-12.4 - Limitations

(a) At the time of initial purchase, the following conditions shall be met:

1. The total amount of debt issues directly purchased or acquired for each eligible fund under this subchapter of any one issuer shall not exceed 10 percent of the outstanding long term debt of the issuer, except that this requirement may be waived by the Council;

2. Not more than five percent of the market value of the assets of the State of New Jersey Cash Management Fund shall be directly invested in the fixed income obligations of any one issuer and affiliated entities;

3. Not more than 10 percent of the market value of the assets of the New Jersey State Employees Deferred Compensation Fixed Income Fund or the New Jersey Better Educational Savings Trust shall be directly invested in the equity and fixed income obligations of any one issuer and affiliated entities;

4. The total amount directly invested in the equity and fixed income obligations of any one issuer and affiliated entities by the Pension and Annuity Funds and the Common Pension Funds, in the aggregate, shall not exceed five percent of the combined assets of all the Pension and Annuity Funds;

5. Not more than five percent of the market value of the assets of any eligible fund (other than a Pension and Annuity Fund or Common Pension Fund) shall be directly invested in debt issued through a private placement; and

6. The total amount directly invested in debt issued through a private placement by the Pension and Annuity Funds and the Common Pension Funds, in the aggregate, shall not exceed seven percent of the combined assets of all the Pension and Annuity Funds.

(b) If, subsequent to initial purchase, the limitations in (a) above are exceeded, then the Council shall be notified at the next regularly scheduled meeting of the Council. The Division may be granted a six-month period of grace to reduce the level of participation below the maximum levels, except that the period of grace may be extended for additional four-month periods with the approval of the Council.

N.J. Admin. Code § 17:16-12.4

New Rule, R.2006 d.317, effective 9/5/2006.
See: 38 N.J.R. 2039(a), 38 N.J.R. 3632(a).
Amended by R.2008 d.237, effective 8/18/2008.
See: 40 N.J.R. 2092(a), 40 N.J.R. 4824(a).
In (a)2, inserted "and the New Jersey Better Educational Savings Trust"; and in (a)3, inserted "or the New Jersey Better Educational Savings Trust".
Amended by R.2008 d.382, effective 12/15/2008.
See: 40 N.J.R. 4683(a), 40 N.J.R. 6993(a).
In (a)1, substituted the first occurrence of "issuer" for "corporation", "issuer, and shall not be" for "company, and not", and ", except that these requirements may be waived by the Council;" for a period at the end; in (a)2, inserted "and non-convertible preferred stock", and substituted "issuer;" for "corporation."; in (a)3, substituted "issuer; and" for "corporation."; and added (a)4.
Amended by R.2013 d.023, effective 2/19/2013.
See: 44 N.J.R. 2277(a), 45 N.J.R. 346(a).
In (a)1, deleted "and shall not be more than 25 percent of the issue at the time of issue," following "issuer,".
Amended by R.2014 d.038, effective 3/3/2014.
See: 45 N.J.R. 1477(a), 46 N.J.R. 442(a).
Rewrote (a).