N.J. Admin. Code § 17:4A-11.1

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

Section 17:4A-11.1 - Permissible investments

(a) Subject to the limitations in this subchapter, the Board may invest or reinvest the PFRSNJ-managed fund assets in commercial paper, provided that:

1. The issuer is not in default as to the payment of principal or interest upon any of its outstanding obligations;

2. All such securities are payable as to both principal and interest in United States dollars;

3. The maturity of the issue does not exceed 270 days; and

4. The obligation or the issuer (or any guarantor pledging its full faith and credit to the issue) has an aggregate credit rating of at least: P-1 or higher by Moody's Investors Service, Inc., A-1 or higher by Standard & Poor's Corporation, and F-1 or higher by Fitch Ratings, except that two of the three ratings is sufficient and one of the three ratings is sufficient if only one rating is available. Subsequent to purchase, if the aggregate credit rating of the obligation, issuer, or guarantor fails to meet the minimum rating criteria, the commercial paper does not have to be sold.

(b) Notwithstanding the restrictions in this subchapter, the Board may authorize the purchase of commercial paper on a case-by-case basis if the Board determines such purchase to be in the financial best interest of the PFRSNJ and its beneficiaries and is consistent with the Board's fiduciary responsibility.

N.J. Admin. Code § 17:4A-11.1

Adopted by 53 N.J.R. 1147(a), effective 7/6/2021

Recodified from 17:4A-11.2 by 56 N.J.R. 795(a) effective 5/6/2024