N.J. Admin. Code § 3:11-9.2
Current through Register Vol. 56, No. 21, November 4, 2024
Section 3:11-9.2 - Investment limitation(a) A standby letter of credit shall be subject to liability limitations prescribed in article 13, section 62, of the Banking Act of 1948, and must be combined with any other nonexempt extension of credit unless prior to or at the time of issuance:1. The issuing bank is paid an amount equal to the bank's maximum liability under the standby letter of credit; or2. The issuing bank has set aside sufficient funds in a segregated deposit account, clearly earmarked for that purpose, to cover the bank's maximum liability under the standby letter of credit.N.J. Admin. Code § 3:11-9.2