New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 2 - INSURANCE GROUP
Subchapter 32 - CUSTODIAL DEPOSITS
Section 11:2-32.3 - Deposits with custodian; establishment of fees

Universal Citation: NJ Admin Code 11:2-32.3

Current through Register Vol. 56, No. 18, September 16, 2024

(a) Whenever the Commissioner is required or authorized by a law of this or any other State or country to receive and hold a deposit, such deposit shall be made with the custodian on behalf of the Commissioner. The custodian is appointed by the Commissioner on the basis of bids submitted by banks to perform such fiduciary functions as the Commissioner deems necessary in the maintenance of deposits, pursuant to N.J.S.A. 17:20-1b and 17B:18-37b.

(b) If securities are deposited, such securities must be:

1. Bills, bonds and notes issued by the United States Treasury;

2. Debt obligations of the State of New Jersey, its authorities, counties and municipalities; or

3. Certificates of deposit of a State or Federally chartered bank, savings bank or savings and loan association with its principal office in New Jersey.

(c) All securities deposited shall be held by the custodian in physical form or, in the case of bills, bonds and notes issued by the United States Treasury, purchased for the depositor's account in the Federal Reserve book-entry system.

(d) The fees to be charged the depositor for the services of the custodian shall be established by the contract between the Commissioner and the custodian.

(e) All depositors shall pay the applicable fee to the custodian when due. All depositors shall also pay any applicable fees or penalties charged by the custodian for nonpayment in addition to any penalties which may be imposed by the Commissioner pursuant to law for violation of this subchapter.

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