New Jersey Administrative Code › Title 17 - TREASURY - GENERAL › Chapter 16 - RULES OF THE STATE INVESTMENT COUNCIL › Subchapter 61 - STATE OF NEW JERSEY CASH MANAGEMENT FUND › Section 17:16-61.5 - Valuation of units

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The following
				method shall be used in determining the income value per unit:
1. Net income available for distribution
				shall equal the sum of daily interest income, daily discount income, realized
				gain on sales, and amortized discount, from which sum shall be deducted the sum
				of realized loss on sales, amortized premium and total daily expenses. Such net
				income available for distribution shall then be divided by the number of
				outstanding participating units to determine the daily income per unit of
				participation.
2. In the case of
				participating funds of counties, municipalities, school districts and agencies
				or authorities created by either such entities or the State (the
				"Other-than-State Funds"), daily income per unit of participation shall be
				further reduced by both a charge to establish a reserve and a charge for
				administrative expenses.
3. The
				charge to establish a reserve shall be in the sum of up to and not to exceed
				one-tenth of one percent per annum of the aggregate value of the units owned by
				the Other-than-State Funds, and the daily income per unit of participation
				owned by such Other-than-State Funds shall reflect their pro rata share of such
				sum. The reserve fund shall be a participating fund in the State of New Jersey
				Cash Management Fund and shall be credited with and will retain daily income
				per unit of participation in the manner of participating State funds. In the
				event of a loss occasioned by the bankruptcy of an issuer of a security held by
				the State of New Jersey Cash Management Fund, or a loss realized upon the sale
				of a security, such loss will be shared pro rata by all participants in the
				Fund, but the assets of the reserve fund will be applied pro rata in a manner
				approved by the Council to that portion of the loss accruing to the
				"Other-than-State Funds." In no event will the application of the assets of the
				reserve fund exceed the loss accruing to the Other-than-State Funds; and no
				State funds will share in the disposition of the assets of the reserve
				fund.
4. Similarly, the
				Other-than-State participants' pro rata share of any gains realized upon the
				sale of securities by the Fund should be credited to the reserve fund. The
				charge for administrative expenses shall be in the sum of up to and not to
				exceed one-tenth of one percent per annum of the aggregate value of the units
				owned by the Other-than-State Funds, and the daily income per participating
				unit owned by such Other-than-State Funds shall reflect their pro rata share of
				such sum. The charge for administrative expenses shall be paid into a fund
				whose assets shall be at the disposal of the Treasurer.
5. The method of calculation of each of the
				above terms will be in accordance with an agreement between the Treasurer and
				the custodian bank.
6. The
				aggregate of daily income per unit of participation on total units owned by
				each participant will be reinvested automatically in additional units at a
				price of $ 1.00 per unit and such new units will be credited to the respective
				accounts of all of the participants in proportion to their holdings of units of
				participation immediately prior to the determination of net income available
				for distribution. In the reinvestment of aggregate daily income as described
				above, fractional units may be issued representing fractions of a dollar, but
				no units will be issued representing fractions of one cent, nor will cash
				dividends be transmitted. Participating funds may obtain cash by redemption of
				units in accordance with
				17:16-61.6.