N.J. Admin. Code § 17:4A-15.2

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

Section 17:4A-15.2 - Limitations

(a) At the time of initial purchase, the following conditions shall be met:

1. The total amount of non-convertible preferred stock purchased or acquired pursuant to this subchapter, in the aggregate, of any one issuer shall not exceed 10 percent of the outstanding non-convertible preferred stock or 25 percent of the issue at the time of issue, except that this requirement may be waived by the Board;

2. The total amount directly invested in the equity and fixed income obligations of any one issuer and affiliated entities, in the aggregate, shall not exceed five percent of total PFRSNJ fund assets; and

3. The total amount directly invested in debt issued through a private placement, in the aggregate, shall not exceed seven percent of the total PFRSNJ fund assets.

(b) If, subsequent to initial purchase, the limitations at (a) above are exceeded, then the Board shall be notified at the next regularly scheduled meeting of the Board. The Board may grant a six-month grace period to reduce the level of participation to at or below the maximum levels, except that the grace period may be extended by one or more additional four-month periods with the approval of the Board, provided the Board determines such extension is in the financial best interest of the PFRSNJ and its beneficiaries and is consistent with the Board's fiduciary responsibility.

N.J. Admin. Code § 17:4A-15.2

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

Recodified from 17:4A-15.4 by 56 N.J.R. 795(a) effective 5/6/2024