New Jersey § 17:9a-28

§ 17:9a-28.

a. Subject to the provisions of this act, a qualified bank, as defined in section

1 of P.L.1948, c. 67 ( C. 17:9A-1 ) shall have power to retain and purchase or otherwise acquire for any trust account

which it is administering or for any other account which it is administering in any

fiduciary capacity, in the absence of any express prohibition to the contrary applicable

to that account: (1) Bonds, notes or other obligations of, or guaranteed by, this State or any agency,

authority or instrumentality of this State; and (2) Bonds, notes or other obligations of any county, municipality, or other governmental

unit or subdivision of this State, or any agency, authority, instrumentality of any

county, municipality or other governmental unit or subdivision of this State; which that qualified bank or an affiliate thereof holds or has acquired as the underwriter

thereof or as a member of an underwriting syndicate thereof. For the purposes of this act, an “affiliate” means a corporation controlled by the

qualified bank or by a bank holding company which controls the qualified bank. b. Notwithstanding the provisions of subsection a. of this section, a qualified bank

which is an issuer of bonds, notes or other obligations shall not retain or purchase

a total of more than 50% of that issue. c. The commissioner shall, by regulation, prescribe the manner in which and the extent

to which the foregoing power may be exercised. No power shall be exercised until regulations on this subject have been adopted. Regulations shall be directed toward protecting the trust account beneficiaries

of that qualified bank but nevertheless affording those beneficiaries the opportunity

of sharing in the benefits of the investment in the bonds, notes and other obligations.