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

Current through Register Vol. 56, No. 14, July 15, 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.