N.J. Admin. Code § 17:16-33.2

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

Section 17:16-33.2 - Permissible investments

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

1. The seller is a bank or trust company or a wholly-owned subsidiary of such bank or trust company which:

i. Is headquartered in the United States; and

ii. Is a member of the Federal Reserve System; or

2. The seller is a securities broker which:

i. Is headquartered in the United States;

ii. Is registered with the Securities and Exchange Commission; and

iii. Meets the criteria for issuers of Commercial Paper as specified under N.J.A.C. 17:16-31.

3. The seller demonstrates the capacity to wire collateral against payment through the Federal Reserve System to a designated custodian bank;

4. The security subject to repurchase is:

i. An obligation of the United States Government;

ii. An obligation of a United States Government agency eligible for investment under N.J.A.C. 17:16-11;

iii. A collateralized note or mortgage or mortgage-backed security eligible for investment under N.J.A.C. 17:16-19 or 17:16-58, respectively; or

iv. A corporate obligation with a credit rating of Aa3 or higher by Moody's Investors Service, Inc., AA- or higher by Standard & Poor's Corporation, and AA- 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;

5. The maturity of the repurchase agreement shall not exceed 30 days;

6. The market value of the securities delivered pursuant to the repurchase agreement shall be equal to at least 102 percent of the par value of the repurchase agreement; and

7. The securities delivered pursuant to the repurchase agreement shall have a maturity not exceeding 10 years from the date of the repurchase agreement.

(b) Notwithstanding the restrictions contained in this subchapter, the Council may approve the purchase of repurchase agreements on a case-by-case basis.

N.J. Admin. Code § 17:16-33.2

As amended, R.1974 d.264, eff. 9/24/1974.
See: 6 N.J.R. 416(a).
As amended, R.1979 d.95, eff. 3/8/1979.
See: 11 N.J.R. 212(a).
As amended, R.1983 d.282, eff. 7/18/1983.
See: 15 N.J.R. 795(a), 15 N.J.R. 1182(c).
Restrictions on investments limited to banks in U.S. not foreign controlled, ability to wire collateral through Federal Reserve and security is an obligation of U.S. Government.
Amended by R.1986 d.357, effective 9/8/1986.
See: 18 N.J.R. 1353(b), 18 N.J.R. 1838(b).
Added text to (a)1.
Recodified by R.1991 d.274, effective 6/3/1991.
See: 23 N.J.R. 983(a), 23 N.J.R. 1800(b).
New Jersey Cash Management Fund added.
Amended by R.1993 d.188, effective 5/3/1993.
See: 25 N.J.R. 909(a), 25 N.J.R. 1886(a).
Revised text.
Amended by R.1995 d.483, effective 9/5/1995.
See: 27 N.J.R. 2543(b), 27 N.J.R. 3378(b).
Amended by R.2001 d.119, effective 4/2/2001.
See: 33 N.J.R. 372(b), 33 N.J.R. 1115(a).
Amended by R.2004 d.252, effective 7/6/2004.
See: 36 N.J.R. 1741(a), 36 N.J.R. 3270(b).
In (a), rewrote 2iii.
Recodified from N.J.A.C. 17:16-32.1 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 "Limitations". Rewrote the section.
Amended by R.2014 d.038, effective 3/3/2014.
See: 45 N.J.R. 1477(a), 46 N.J.R. 442(a).
In the introductory paragraph of (a)4, deleted "and" preceding "subject", and substituted a colon for a semicolon at the end; rewrote (a)4iii; in (a)4iv, substituted "A corporate obligation" for "Corporate obligations"; and in (a)6, substituted "The" for "At the time of purchase, the", and inserted a semicolon following "agreement".