N.J. Admin. Code § 17:16-81.2

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

Section 17:16-81.2 - Permissible investments

(a) Subject to the limitations in this subchapter, the Director may enter into spot contracts for the purpose of settling investment transactions denominated in foreign currency.

(b) Subject to the limitations contained in this subchapter, the Director may enter into forward contracts for the purpose of hedging an eligible fund's international portfolio.

(c) Counterparties to foreign currency transactions shall be approved by and included on a list maintained by the Director. At the time of each transaction, the counterparty (or any guarantor pledging its full faith and credit to the transaction) shall have a long term credit rating of Baa2 or higher by Moody's Investors Service, Inc., BBB or higher by Standard & Poor's Corporation, and BBB or higher by Fitch Ratings, or the counterparty must be approved by the Council, except that two of the three ratings are sufficient and one of the three ratings is sufficient if only one rating is available.

(d) Notwithstanding the restrictions in this subchapter, the Council may approve the entering into foreign currency transactions on a case-by-case basis.

N.J. Admin. Code § 17:16-81.2

Amended by R.2006 d.260, effective 7/17/2006.
See: 38 N.J.R. 1412(a), 38 N.J.R. 3066(a).
Added designation (a); rewrote (a); and added (b) and (c).
Recodified from N.J.A.C. 17:16-81.1 and amended by R.2006 d.317, effective 9/5/2006.
See: 38 N.J.R. 2039(a), 38 N.J.R. 3632(a).
Deleted former (b); and recodified former (c) as present (b).
Amended by R.2014 d.038, effective 3/3/2014.
See: 45 N.J.R. 1477(a), 46 N.J.R. 442(a).
Added new (a) and (c); recodified former (a) as (b) and former (b) as (d); and rewrote (b) and (d).