N.J. Admin. Code § 17:4A-17.2

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

Section 17:4A-17.2 - Limitations

(a) At the time of initial purchase, the following conditions shall be met:

1. Not more than 25 percent of any one issue of mortgage-backed senior debt securities may be directly purchased at the time of issue, except that this requirement may be waived by the Board;

2. Not more than five percent of the market value of the total PFRSNJ fund assets shall be directly invested in any one issue; and

3. Not more than 10 percent of the total PFRSNJ fund assets shall be directly invested in mortgage-backed senior debt securities and mortgage-backed pass-through securities.

(b) If, subsequent to initial purchase, the limitations at (a) above are exceeded, then the Board shall be notified at the next regularly scheduled meeting of the Board. The Board may grant a six-month grace period to reduce the level of participation to at or below the maximum levels, except that the grace period may be extended by one or more additional four-month periods with the approval of the Board, provided the Board determines such extension is 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-17.2

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

Recodified from 17:4A-17.4 by 56 N.J.R. 795(a) effective 5/6/2024