New Jersey Administrative Code
Title 13 - LAW AND PUBLIC SAFETY
Chapter 44J - CEMETERIES
Subchapter 5 - CEMETERY COMPANIES
Section 13:44J-5.4 - Trust fund management; recordkeeping

Universal Citation: NJ Admin Code 13:44J-5.4

Current through Register Vol. 56, No. 6, March 18, 2024

(a) All investments of cemetery trust funds shall be made pursuant to the "Prudent Investor Act," 3B:20-11.1 et seq.

(b) A cemetery company may invest its trust funds in options for stock which the cemetery company holds in its portfolio when the exercise price of the option is in excess of the original purchase price of the stock. All other option transactions are deemed overly speculative and imprudent. In instances when an option has been written, the trust is permitted to purchase options to cover the sale of any option previously written.

(c) All cemetery companies shall maintain records of income, expenses and investments of its general fund, Maintenance and Preservation Fund and any other trust fund administered directly or indirectly by a cemetery company so as to afford an intelligent understanding of the conduct of its business.

(d) Capital gains from the sale of items in a trust fund shall not be treated as income of the Maintenance and Preservation Fund and shall be retained as principal of the Maintenance and Preservation Fund.

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