N.J. Admin. Code § 5:46-1.5

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

Section 5:46-1.5 - Supervised savings accounts

(a) The community-based organizations shall apply criteria for minimum and maximum levels of deposit that have been approved by the Department. These criteria shall be determined based upon the circumstances of the population to be served; provided, however, that in all cases the minimum level of deposit shall be not less than $ 10.00 per month.

(b) Deposits in excess of $ 1,500 per year shall not be eligible for matching funds.

(c) No withdrawal of funds from any supervised savings account shall be permitted by a financial institution without signatures of both the account holder and an authorized representative of the community-based organization.

1. Prior to consenting to any withdrawal of funds, a representative of the community-based organization shall discuss with the account holder the consequences of the intended withdrawal of funds. The community-based organization shall not unreasonably withhold its consent to the withdrawal.

(d) The account holder may, upon the approval of the community-based organization, withdraw moneys from the account holder's individual development account in the form of a joint check or transfer of funds made payable to the account holder and the payee of the approved withdrawal, pursuant to 45 C.F.R. § 263.22, for any of the following purposes:

1. Post-secondary educational expenses as defined in 42 U.S.C. § 604(h)(5) and 45 C.F.R. § 263.20;

2. Qualified acquisition costs of a primary residence as defined in 42 U.S.C. § 604(h)(5) and 45 C.F.R. § 263.20; and

3. Qualified business capitalization expenses, as defined in 42 U.S.C. § 604(h)(5) and 45 C.F.R. § 263.20.

(e) In the event that an account holder withdraws any money from a supervised savings account for any other than post-secondary educational expenses, qualified acquisition costs of a primary residence, or qualified business capitalization expenses there shall be a commensurate reduction in the amount of money held by the community-based organization in the trust account maintained for that account holder. Funds withdrawn from the trust account pursuant to this subsection shall be used for matching deposits in other trust accounts, unless the Department shall otherwise direct.

N.J. Admin. Code § 5:46-1.5