N.J. Admin. Code § 3:34-1.7

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

Section 3:34-1.7 - Eligible collateral

(a) All eligible collateral used to secure public funds on deposit in a public depository shall be in a form that is "readily marketable" and "liquid." The determination of "readily marketable" and "liquid" shall be made by the Commissioner based upon the existence of a substantial public market for the collateral and a high probability that the Commissioner could convert the collateral into cash promptly through existing available channels.

(b) In addition to obligations otherwise authorized in 17:9-41, eligible collateral shall also include irrevocable stand-by letters of credit issued by a Federal Home Loan Bank. The Commissioner shall review and approve the form of all such letters of credit proposed by a public depository as eligible collateral under this section. Further, the original letter of credit shall be held by the Commissioner.