N.J. Admin. Code § 17:16-19.4

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

Section 17:16-19.4 - Limitations

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

1. No amount in excess of 25 percent of any one issue may be purchased directly. For the purpose of this limitation, the issue size shall be considered as the principal amount issued pursuant to all classes of securities payable from the returns generated by the underlying collateral;

2. Not more than five percent of the assets of any one fund shall be directly invested in the obligations of any one issue. This limitation shall not apply to any fund classified as a Common Pension Fund;

3. Not more than five percent of the market value 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;

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; and

5. Not more than 10 percent of the assets of any eligible fund other than a Pension and Annuity Fund or Common Pension Fund (or five percent of the combined assets of all the Pension and Annuity Funds) shall consist of collateralized notes and mortgages directly purchased pursuant to this subchapter.

(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 § 17:16-19.4

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.2014 d.038, effective 3/3/2014.
See: 45 N.J.R. 1477(a), 46 N.J.R. 442(a).
In (a)1, inserted "directly"; rewrote (a)2; added new (a)3 and (a)4; recodified former (a)3 as (a)5; and rewrote (a)5.