N.J. Admin. Code § 3:6-6.6

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

Section 3:6-6.6 - Authorization to invest in this type of collective investment

(a) Where collective investments of the type described in this subchapter are not specifically authorized by the governing instruments of the various participating accounts, such investments may be made pursuant to 17:9A-37 and in such case:

1. Participation in such investment shall be restricted to accounts in which the bank is acting in a fiduciary capacity specified in paragraphs (5), (6), (9) and (10) of 17:9A-28;

2. The written variable note duly executed by the parties and a written outline of the procedure, as above set forth, controlling participation in such investment or a written incorporation by reference of the above-mentioned procedure shall constitute the written plan in accordance with the provisions of 17:9A-37(E);

3. The note is of a borrower whose commercial paper is rated at least A-1 by the financial periodicals rating commercial paper (for example, Standard and Poor) and such note is either payable on demand or at the call of the bank; and

4. The determination of whether such collective investment shall constitute a legal common trust fund or a discretionary common trust fund shall be determined in accordance with the provisions of N.J.S.A. 17:9A-38D and the Prudent Investor Act, 3B:20-11.1 et seq.

N.J. Admin. Code § 3:6-6.6

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)3, deleted N.J.S.A reference and in (a)4, amended existing N.J.S.A. reference and inserted the second N.J.S.A. reference.