New Jersey Administrative Code
Title 3 - BANKING
Chapter 11 - INVESTMENTS
Subchapter 9 - STANDBY LETTERS OF CREDIT
Section 3:11-9.2 - Investment limitation
Universal Citation: NJ Admin Code 3:11-9.2
Current through Register Vol. 56, No. 18, September 16, 2024
(a) A standby letter of credit shall be subject to liability limitations prescribed in article 13, section 62, of the Banking Act of 1948, and must be combined with any other nonexempt extension of credit unless prior to or at the time of issuance:
1. The issuing bank is paid an
amount equal to the bank's maximum liability under the standby letter of
credit; or
2. The issuing bank has
set aside sufficient funds in a segregated deposit account, clearly earmarked
for that purpose, to cover the bank's maximum liability under the standby
letter of credit.
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