N.J. Admin. Code § 17:4A-4.1

Current through Register Vol. 56, No. 21, November 4, 2024

Section 17:4A-4.1 - Permissible transactions

(a) Subject to the limitations in this subchapter, the Board may enter into securities lending transactions on behalf of the PFRSNJ, provided that:

1. The portfolios eligible to have securities loaned by the PFRSNJ are designated by the Chief Investment Officer or the Investment Committee as eligible for securities lending;

2. The borrower is on a list of approved borrowers maintained by the Chief Investment Officer or the Investment Committee;

3. The transaction is evidenced by a written securities lending agreement executed by the borrower and the PFRSNJ;

4. The collateral delivered by the borrower is held in a segregated custodial account on behalf of the PFRSNJ;

5. The securities loaned by the PFRSNJ and the collateral delivered by the borrower shall be marked to market each business day. The borrower shall be required to deliver additional collateral in the event the market value of the collateral is less than the required percentage of the market value of the loaned securities, as required by the securities lending agreement; and

6. The securities lending agent, if applicable, shall establish and maintain such records as are reasonably necessary to account for the securities lending transactions and the income derived therefrom.

(b) The cash collateral shall be reinvested in securities permissible for investment pursuant to this chapter and in accordance with investment guidelines established by the Chief Investment Officer or the Investment Committee.

(c) Notwithstanding the restrictions in this subchapter, the Board may approve securities lending transactions or the reinvestment of collateral on a case-by-case basis if the Board determines such transactions to be in the best financial interest of the PFRSNJ and its beneficiaries and is consistent with the Board's fiduciary responsibility.

N.J. Admin. Code § 17:4A-4.1

Adopted by 53 N.J.R. 1147(a), effective 7/6/2021

Recodified from 17:4A-4.2 by 56 N.J.R. 795(a) effective 5/6/2024