N.J. Admin. Code § 17:16-17.2

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

Section 17:16-17.2 - Permissible investments

(a) Subject to the limitations contained in this subchapter, the Director may invest and reinvest moneys of any eligible fund in state and municipal general obligations and public authority revenue obligations, except that moneys of the Trustees for the Support of Public Schools shall only be invested and reinvested in obligations issued by the State of New Jersey or its counties, municipalities, and school districts as required by N.J.S.A. 18A:56-8, provided that:

1. The obligor is not in default as to the payment of principal or interest upon any of its outstanding obligations; and

2. The obligations have a credit rating of A3 or higher by Moody's Investors Service, Inc., A- or higher by Standard & Poor's Corporation, and A- or higher by Fitch Ratings, except that two of the three ratings is sufficient and one of the three ratings is sufficient if only one rating is available. If a rating for the obligations has not been obtained from the above services, the obligations may be purchased if the issuer rating meets the minimum rating criteria. Subsequent to purchase, if ratings fall below the minimum rating for such obligations, they do not have to be sold, and they may be exchanged with obligations with a credit rating lower than the minimum rating if the obligations received in exchange are, on balance, similarly rated.

(b) Investments made pursuant to this subchapter shall comply with Federal arbitrage regulations, if applicable.

(c) Notwithstanding (a) above, the Director may only invest and reinvest the moneys of a fund classified as a Temporary Reserve Fund, a Demand Fund or a Static Fund in state and municipal general obligations provided that such investment in tax exempt securities is required in order to comply with Federal arbitrage regulations and further provided that such investment qualifies under this subchapter and that the obligations were issued with an unqualified approving opinion of a recognized bond counsel to the effect that the obligations have been duly authorized and issued and are legal, valid and binding obligations of the issuer. If the obligations are guaranteed by the Federal government, the above requirement may be waived.

(d) Notwithstanding the restrictions in this subchapter, the Council may approve the purchase of state and municipal general obligations and public authority revenue obligations on a case-by-case basis.

N.J. Admin. Code § 17:16-17.2

As amended, R.1975 d.363, effective 12/11/1975.
See: 7 N.J.R. 51(b).
Recodified by R.1991 d.274, effective 6/3/1991.
See: 23 N.J.R. 983(a), 23 N.J.R. 1800(b).
Provisions amended to include all funds.
Amended by R.2001 d.119, effective 4/2/2001.
See: 32 N.J.R. 372(b), 33 N.J.R. 1115(a).
Recodified from N.J.A.C. 17:16-17.1 and amended by R.2006 d.317, effective 9/5/2006.
See: 38 N.J.R. 2039(a), 38 N.J.R. 3632(a).
Section was "Applicable funds". Rewrote the section.
Amended by R.2009 d.316, effective 10/19/2009.
See: 41 N.J.R. 2635(a), 41 N.J.R. 3959(a).
In the introductory paragraph of (a) and in (c), substituted "state" for "New Jersey State"; and in (d), deleted "New Jersey" preceding "state".
Amended by R.2014 d.038, effective 3/3/2014.
See: 45 N.J.R. 1477(a), 46 N.J.R. 442(a).
Rewrote the introductory paragraph of (a); in (b), inserted "if applicable"; and in (d), inserted "and public authority revenue obligations".