N.J. Admin. Code § 17:16-5.2

Current through Register Vol. 57, No. 1, January 6, 2025

Section 17:16-5.2 - Permissible transactions

(a) Subject to the limitations contained in this subchapter, the Director may enter into securities lending transactions on behalf of any eligible fund, provided that:

1. The securities are on a list of securities eligible for securities lending transactions maintained by the Director;

2. The borrower is on a list of approved borrowers maintained by the Director;

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

4. The collateral is held in a separate account on behalf of any eligible fund;

5. The securities loaned by an eligible fund and the cash 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 cash 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 for any Common Pension Fund under this chapter and included on a list of securities permissible for securities lending transactions maintained by the Director.

(c) Notwithstanding the restrictions in this subchapter, the Council may approve securities lending transactions or the reinvestment of cash collateral on a case-by-case basis.

N.J. Admin. Code § 17:16-5.2