N.J. Admin. Code § 3:6-6.2

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

Section 3:6-6.2 - Provisions of note

(a) Under this arrangement, the borrower delivers its note to evidence the amount of the loan outstanding from time to time.

(b) The note may be a demand obligation or have a fixed maturity (in which case it is understood that the borrower will renew the note at maturity) and may set forth provisions concerning the rate and payment of interest in the note or in a separate agreement to which reference is made in the note.

(c) The note must be payable to the order of the bank or to a nominee of the bank and may be repayable by the borrower in whole or in part at any time, and should contain columns for entering changes in the amount of the loan outstanding, the dates of such changes, and the initial of an employee of the bank authorized by the borrower to make such entries.

(d) While it is preferable that all entries affecting the balance of the note shall be recorded thereon, it is satisfactory for such entries to be recorded separately, provided adequate documentation is maintained in regard to all such entries.

(e) All notes must be kept in the custody of duly authorized employees of the bank.

N.J. Admin. Code § 3:6-6.2

Amended by R.2001 d.203, effective 6/18/2001.
See: 33 N.J.R. 926(a), 33 N.J.R. 2079(c).
In (a), neutralized gender reference.