N.J. Admin. Code § 17:16-17.4

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

Section 17:16-17.4 - Limitations

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

1. Not more than 10 percent of any one issue, serial note, or maturity may directly be purchased in the aggregate by all eligible funds;

2. Not more than five percent of the assets of any eligible fund (other than a Pension and Annuity Fund or Common Pension Fund) shall be directly invested in the debt of any one obligor;

3. The total amount directly invested in the debt of any one obligor by the Pension and Annuity Funds and Common Pension Funds, in the aggregate, shall not exceed two percent of the combined assets of all the Pension and Annuity Funds;

4. In accordance with N.J.S.A. 18A:56-8, investments for the Trustees for the Support of Public Schools shall not be made in the obligations of any municipality, the total indebtedness of which, including the school debt, exceeds 30 percent of the assessed valuation of all the real and personal property therein; in ascertaining the total indebtedness, credit shall be allowed only for such moneys or property as shall be in the sinking funds; and

5. In accordance with N.J.S.A. 18A:56-8, investments for the Trustees for the Support of Public Schools shall not be made in the obligations of any county, the total indebtedness of which exceeds in the aggregate 15 percent of the total assessable valuation of all taxable property therein.

(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 § 17:16-17.4

New Rule, R.1982 d.192, effective 6/4/1982.
See: 13 N.J.R. 526(b), 14 N.J.R. 663(b).
Recodified by R.1991 d.274, effective 6/3/1991.
See: 23 N.J.R. 983(a), 23 N.J.R. 1800(b).
Eligible funds broadened; tax-exempt bond purchase specified; minimum quality standard and maximum level of purchases set.
Amended by R.2001 d.119, effective 4/2/2001.
See: 33 N.J.R. 372(b), 33 N.J.R. 1115(a).
Repeal and New Rule, R.2006 d.317, effective 9/5/2006.
See: 38 N.J.R. 2039(a), 38 N.J.R. 3632(a).
Section was "Purchases for Temporary Reserve Group, Demand and Static Funds".
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)1 and (a)2; and added (a)3 through (a)5.

Amended by 53 N.J.R. 1857(a), effective 11/1/2021