New Jersey Administrative Code
Title 3 - BANKING
Chapter 34 - GOVERNMENTAL UNIT DEPOSIT PROTECTION
Subchapter 1 - GOVERNMENTAL UNIT DEPOSIT PROTECTION
Section 3:34-1.15 - Requirements for first time public depositories

Universal Citation: NJ Admin Code 3:34-1.15

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

(a) Before initially accepting public funds, a depository shall submit a complete application to the Department for approval as a public depository on a form found on the Department's website at http://www.nj.gov/dobi/index.html. The information to be provided on the form shall include the depository's identifying information, chartering agency, a certified copy of board resolution(s) authorizing participation in GUDPA and designating the depository's GUDPA custodian, total capital funds, and the name of the approved custodian. Upon receipt of a complete application, the Commissioner shall publish notice of the submission of the application on the Department's website at http://www.nj.gov/dobi/index.html. After review of the application, the Commissioner shall approve the application within 30 days of the Department's acceptance of all required materials and confirmation of compliance with all requirements set forth in this chapter and shall prescribe the amount of eligible collateral required to be maintained.

(b) Upon the Commissioner approving the application and prescribing the required collateral amount and the collateral being properly pledged with the custodian and proof of that being provided by the custodian to the Department, the approved status of the public depository will be published on the Department's website at http://www.nj.gov/dobi/index.html. After approval by the Department of the first valuation report filed by the public depository in accordance with N.J.A.C. 3:34-1.4, the public depository will be added to the electronic list of approved public depositories referenced in N.J.A.C. 3:34-1.8.

(c) After a public depository has held public funds for an entire three-month period and filed a valuation report for the full three-month period, it shall hold eligible collateral in the amount required by 3:34-1.6 unless otherwise ordered by the Commissioner. When deciding whether to order a public depository to hold eligible collateral in an amount higher than required by 3:34-1.6, the Commissioner shall consider factors related to the level of risk to which the public funds held by the public depository are exposed, including, but not limited to, the factors listed below:

1. The tangible equity capital of a non-credit union public depository or net worth of a credit union public depository;

2. The level of concentrations reflected in the public depository's financial statements;

3. The single borrower lending limit to which the public depository is subject pursuant to applicable State or Federal law or regulations; and

4. Such other factors as the Commissioner may deem relevant to an evaluation of the level of risk to which the public funds held by the public depository may be exposed.

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