New Jersey Administrative Code
Title 3 - BANKING
Chapter 11 - INVESTMENTS
Subchapter 8 - SAVINGS BANKS INVESTMENT SECURITIES
Section 3:11-8.1 - Investment securities

1. Bonds, debentures, notes or other obligations of any business corporation, except bank holding companies, which are defined in (a)3 below, organized under the laws of the United States or any state therein; provided, however, such investment security has received a quality rating in any of the first three quality classifications issued by Moody's Investors Service, Inc., Standard & Poor's Corporation, or Fitch Investors Service, Inc., or has received a quality rating in the first seven quality classifications issued by Duff and Phelps, Inc. If such investment security shall be of a type commonly denominated as "commercial paper" such obligation shall have received a quality rating of P-1 by Moody's Investors Service, Inc., A-1 by Standard & Poor's Corporation, F-1 by Fitch Investors Service, Inc., or Duff 1 plus or minus.

2. Bonds, debentures, notes and bankers acceptances issued by any banking institution, excluding a savings bank, as defined in section 1(2) of N.J.S.A. 17:9A, which banking institution at the date of its last published statement preceding the date of investment had a combined total of capital stock, surplus, reserve for contingencies and undivided profits equal to at least $ 40 million and also equal to at least five percent of its aggregated deposit liability;

3. Bonds, debentures, notes and bankers acceptances issued by any bank holding company authorized to do business in New Jersey which is registered as a bank holding company under the provisions of the act of Congress, known as the Bank Holding Company Act of 1956 (act of May 9, 1956, 70 stat. 133), as amended. Such holding company must have as of the date of its last published statement preceding the date of investment a combined total of capital stock, surplus, reserve for contingencies and undivided profits equal to at least $ 40 million and also equal to at least five percent of its aggregate deposit liability;

4. Bonds, notes, debentures or other obligations issued or insured or guaranteed by any agency, authority, instrumentality or corporate body created by and for the United States Government whether or not such obligations are guaranteed by the United States;

5. Bonds, notes, debentures or other obligations issued or insured or guaranteed by any agency, authority, instrumentality or corporated body created by and for the State of New Jersey whether or not such obligations are guaranteed by the State of New Jersey.

1. No savings bank shall make an investment in any investment security issued by an individual business corporation when the making of such investment will cause the aggregate liability of such corporation to such savings bank in any capacity to exceed five percent of the total indebtedness of such corporation, or two percent of the assets of such savings bank, whichever amount is lesser;

2. The board of managers shall at all times exercise reasonable discretion in the acquisition, retention and disposition of any investment security;

3. This subchapter shall not be deemed to authorize any savings bank to acquire any investment which contravenes the specific provisions contained in N.J.S.A. 17:9A-26.1;

4. If an investment would be authorized both by this subchapter and 17:9A-174 -180, then such investment shall be deemed to have been made under such section of N.J.S.A. 17:9A and all limitations applicable to such section shall apply.