New Jersey § 17:12b-165

§ 17:12b-165.

A State association may invest as follows: (1) Obligations of the United States. In obligations of or guaranteed as to principal and interest by the United States

of America. (2) Federal Home Loan Bank Stock. In stock of the Federal Home Loan Bank, of which it is eligible to be a member;

and in other obligations of any Federal Home Loan Bank or banks or of the Federal

Home Loan Bank System. (3) Participation in mortgage loans. In the investment in participating interests in mortgage loans. The mortgage which secures payment of any such participating interest shall be a

lien upon real estate and shall conform with the limitations, conditions and requirements

set forth in this article regulating direct reduction mortgage and straight mortgage

loans, with respect to priority of lien, the percentage of such loan to be the appraised

value of the mortgaged property, and the terms of repayment of such loan or in conformity

with the limitations, conditions and requirements set forth in rules and regulations

of the Federal Savings and Loan Insurance Corporation. Such participating interest shall entitle the State association to share all money

and other benefits derived from such mortgage loan, or incidental thereto, pro rata

with, or with preference and priority over, the holder of any other participating

interest therein. (4) Accounts of other associations. In accounts of any insured State association of this State and of any Federal association

whose principal office is located in this State; provided, that no such investment

shall be made in excess of the amount for which such amount is insured by the Federal

Savings and Loan Insurance Corporation. (5) Savings banks' investments. In any investment in which savings banks of New Jersey are or shall be authorized

to invest by any law of this State, other than investments which are, or which hereafter

shall be, specifically designated and regulated by this act; provided, however, no

funds may be invested pursuant to this subsection which are required for authorized

loans to members. (6) Loans on securities. In loans upon obligations secured by the pledge of any security designated in subsections

(1) and (5) of this section; provided, that any loan made on an obligation designated

in subsection (1) of this section shall not exceed the market value of the obligation

pledged as collateral and any loan made on the security designated in subsection (5)

of this section, shall not exceed 80% of the market value of the security pledged

as collateral and provided further, that no funds may be invested pursuant to this

subsection which are required for other authorized loans to members. (7) Central and other service corporations. (a) In the capital stock, securities, debentures or other obligations of a single

corporation organized under the laws of the State of New Jersey, the entire capital

stock of which corporation shall be open to, subscribed for, and issued to State associations

of this State and such Federal associations that have their principal offices in this

State; provided, however, that the original capital stock of such corporation shall

aggregate at least $200,000.00 from subscriptions and payments by at least 10 of the

aforementioned associations; and provided further, that no association, aforementioned,

may invest its funds under this subsection in an amount exceeding 5% of its assets

at the time of such subscription, payment or investment, except with the approval

of the commissioner. (b) In the capital stock, securities, debentures or other obligations of any corporation

organized under the laws of the State of New Jersey, if the entire capital stock of

such corporation is available for purchase only by State associations of this State

and such Federal associations that have their principal offices in this State; provided,

however, that no association aforementioned may make any investment under this subsection

in an amount exceeding 3% of its assets, except with the approval of the commissioner. (8) Federal corporations. In the capital stock, securities, debentures or other obligations of any corporation

created by Act of Congress in which such investment may be open to associations and

which shall afford advantages or safeguards to associations. (9) In any other investment in which an association is, or shall be, authorized to invest

by any law of this State. (10) Participation in loans or investments. In a participating interest in any loan or investment which an association is authorized

to make. (11) State securities. Investments in the general obligations of any State or any political subdivision

thereof. (12) Loans to financial institutions, brokers and dealers. Loans to financial institutions with respect to which the United States or any agency

or instrumentality thereof has any function of examination or supervision, or to any

broker or dealer registered with the Securities and Exchange Commission, secured by

loans, obligations, or investments in which the association has the statutory authority

to invest directly. (13) Investment companies. An association may invest in, redeem, or hold shares of certificates in any open-end

management investment company which is registered with the Securities and Exchange

Commission under the Investment Company Act of 1940 1 and the portfolio of which is restricted by such management company's investment

policy, changeable only if authorized by shareholder vote, solely to any such investments

as an association by law or regulation may, without limitation as to percentage of

assets, invest in, sell, redeem, hold, or otherwise deal with. The commissioner may prescribe rules and regulations to implement the provisions

of this subsection and shall promulgate such rules and regulations in substantial

conformity with similar rules and regulations of the Federal Home Loan Bank Board. (14) Commercial paper and corporate debt securities. Subject to the limitation of subsection M. of section 155 of P.L.1963, c. 144 ( C. 17:12B-155 ), an association may invest in, sell or hold commercial paper and corporate debt

securities, as defined and approved pursuant to rules and regulations promulgated

by the commissioner. The commissioner shall promulgate such rules and regulations in substantial conformity

with similar rules and regulations of the Federal Home Loan Bank Board. 1

15 U.S.C.A. § 80a-1 et seq.