N.J. Admin. Code § 17:4A-4.2

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

Section 17:4A-4.2 - Limitations

(a) Not more than 15 percent of the market value of the total PFRSNJ fund assets shall be loaned to any one borrower.

(b) The credit quality of the required collateral shall be specified in an agreement with the securities lending agent, where applicable, and in each securities lending agreement.

(c) In no event shall the required collateral level be less than 100 percent of the market value of the loaned securities.

(d) If the limitations in this subchapter are not met, 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 bring the transactions into compliance, 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-4.2

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

Recodified from 17:4A-4.4by 56 N.J.R. 795(a) effective 5/6/2024