New Jersey § 17:9-43

§ 17:9-43.

a. (1) Except as set forth in subsection b. of this section concerning extraordinary

amounts of public funds on deposit, every public depository having public funds on

deposit therein that are not insured by the Federal Deposit Insurance Corporation

or by any other agency of the United States which insures deposits made in public

depositories, shall maintain, as security for such deposits, eligible collateral having

a market value: (a) At least equal to 5% of the uninsured public funds on deposit, if the public depository

is well capitalized; (b) At least equal to 30% of the uninsured public funds on deposit, if the public

depository is adequately capitalized; (c) At least equal to 60% of the uninsured public funds on deposit, if the public

depository is undercapitalized; (d) At least equal to 90% of the uninsured public funds on deposit, if the public

depository is significantly undercapitalized, or, in the alternative and at the election

of the depository, a reduction in the amount of public funds held on deposit, so that

the only remaining public funds on deposit after this reduction are insured by the

Federal Deposit Insurance Corporation or by any other agency of the United States

which insures deposits made in public depositories; or (e) At least equal to 120% of the uninsured public funds on deposit, if the public

depository is critically undercapitalized, or, in the alternative and at the election

of the depository, a reduction in the amount of public funds held on deposit, so that

the only remaining public funds on deposit after this reduction are insured by the

Federal Deposit Insurance Corporation or by any other agency of the United States

which insures deposits made in public depositories. (2) The amount of eligible collateral in relation to the amount of public funds on

deposit necessary for a public depository to meet the collateral requirements of paragraph

(1) of this subsection shall be measured as: (a) the percentage, set forth under

paragraph (1) of this subsection, of the average daily balance of collected, uninsured

public funds on deposit during the three-month period ending on the immediately preceding

valuation date; or (b), at the election of the depository, the percentage, set forth

under paragraph (1) of this subsection, of the average balance of collected, uninsured

public funds on deposit on the first, eighth, fifteenth and twenty-second days of

each month in the three-month period ending on the immediately preceding valuation

date. b. (1) Every public depository having public funds on deposit therein in excess of

$200,000,000 that are not insured by the Federal Deposit Insurance Corporation or

by any other agency of the United States which insures deposits made in public depositories

shall maintain, as security for such excess, uninsured deposits, eligible collateral

having a market value at least equal to 100% of the average daily balance of those

collected, uninsured public funds on deposit during the three-month period ending

on the immediately preceding valuation date, or, at the election of the depository,

at least equal to 100% of the average balance of those collected, uninsured public

funds on deposit on the first, eighth, fifteenth and twenty-second days of each month

in the three-month period ending on the immediately preceding valuation date. (2) A public depository shall not at any time receive and hold on deposit for any

period in excess of 15 days public funds of a governmental unit or governmental units

which, in the aggregate, exceed 75% of the capital funds of the depository, unless

such depository shall, in addition to the security required to be maintained under

this section, secure such excess by eligible collateral with a market value at least

equal to 100% of such excess.