N.J. Admin. Code § 17:16-32.2

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

Section 17:16-32.2 - Permissible investments

(a) Subject to the limitations contained in this subchapter, the Director may invest and reinvest the moneys of any eligible fund in certificates of deposit, provided that:

1. The investment in the certificate of deposit is limited to a term of one year or less;

2. The certificate of deposit is in an amount of at least $ 1 million;

3. If headquartered in the United States or if a United States subsidiary or branch of a foreign bank, the issuer (or any parent bank or trust company, whose full faith and credit is pledged to the issue) is a member of the Federal Reserve System and the Federal Deposit Insurance Corporation; and

4. If headquartered outside of the United States, the issuer (or any parent bank or trust company, whose full faith and credit is pledged to the issue) is headquartered in a country that has agreed to adhere to the international capital standards as stipulated in the Basel Accord.

(b) The issuer (or any parent bank or trust company, whose full faith and credit is pledged to the issue) has a credit rating of P-1 or higher by Moody's Investors Service, Inc., A-1 or higher by Standard & Poor's Corporation, or F-1 or higher by Fitch Ratings. Subsequent to purchase, if the issuer rating fails to meet the minimum rating criteria, the certificate of deposit does not have to be sold.

(c) Notwithstanding the restrictions contained in this subchapter, the Council may approve the purchase of certificates of deposit on a case-by-case basis.

N.J. Admin. Code § 17:16-32.2

Amended by 51 N.J.R. 1130(b), effective 7/1/2019