N.J. Admin. Code § 3:35-1.3

Current through Register Vol. 56, No. 23, December 2, 2024

Section 3:35-1.3 - Required disclosures and minimum standards

(a) A qualified educational institution shall have unrestricted net assets in an amount at least equal to the amount of assets under trust management.

(b) A qualified educational institution shall provide for adequate vault or other safekeeping facilities for the safeguarding of stocks and other securities held in its trust accounts.

(c) A qualified educational institution shall have in effect liability insurance in the amount of $ 1,000,000, for each director, officer or other employee of the educational institution responsible for administering and investing assets of its trust accounts.

(d) A qualified educational institution shall have among its officers or other employees persons determined by the Commissioner to possess the qualifications, experience and character required for the duties and responsibilities for which they will be responsible in administering and investing assets of its trust accounts.

(e) A qualified educational institution shall have available competent legal counsel licensed to practice law in this State to advise about trust matters whenever necessary.

(f) All monies, securities and other properties held by a qualified educational institution in trust shall be kept separate and apart from the monies, securities and other property belonging to the qualified educational institution. This requirement shall be satisfied as long as the qualified educational institution at all times maintains records that show the name of the party on whose account the monies, securities and other property is held.

N.J. Admin. Code § 3:35-1.3