New Jersey § 17:9a-40

§ 17:9a-40.

A. If so provided in the plan pursuant to which a common trust fund is established

and maintained, the bank may divide the common trust fund into as many units as it

may deem advisable, and it may increase or decrease the number of such units from

time to time. Each unit shall at all times have the same value as every other unit of the same

common trust fund. Such plan may also provide that a participation shall consist of a whole unit or

a number of whole units, and may provide that withdrawals be made only of a whole

unit or a number of whole units. B. In determining the value of the property and investments of a common trust fund, (1) an investment which is listed upon a stock, securities or investment exchange,

shall be valued at the last recorded sales price in the ten-day period next preceding

the date as of which the valuation is made, unless, within the said ten-day period,

and subsequent to the date of the last recorded sales price, there have been recorded

bid and asked prices, in which case the mean of the latest of such bid and asked prices

shall be taken to be the value of such investment. An investment which is not listed upon a stock, securities or investment exchange,

but which has an over-the-counter market, shall be valued at the mean of the last

recorded bid and asked prices in the ten-day period next preceding the date as of

which such valuation is made. If within the said ten-day period, there have been no recorded sales and no recorded

bid and asked prices, the investment shall be valued at the mean of the last bid and

asked prices as of a date not earlier than thirty days prior to the date as of which

such valuation is made, as supplied by two stock or securities brokers deemed by the

bank to be reliable. For the purposes of this paragraph, recorded sales prices, and recorded bid and

asked prices shall be those which appear in a newspaper of general circulation, or

in a financial, statistical, investment, rating or other publication or service, published

for the use of and accepted as reliable by investors in like investments, or in the

records of a stock, securities, or investment exchange; (2) obligations of the United States which are not transferable or negotiable shall

be valued at the issue price thereof; (3) an investment about to be made, and an investment made and awaiting delivery against

payment, shall be valued at the cost of acquisition thereof, and the cash account

of the common trust fund shall be adjusted to reflect such cost of acquisition; (4) an investment sold but not delivered pending receipt of the proceeds of sale shall

be valued at the net sale price thereof; (5) uninvested funds of a common trust fund shall be included in the aggregate value

of all the property of a common trust fund to the extent that such funds constitute

principal. C. No person having an interest in a trust estate which has been invested in whole

or in part in a common trust fund shall have any ownership in any asset included in

such common trust fund. The bank shall have exclusive control of every common trust fund established and

maintained by it. D. The bank shall not amortize premiums paid upon the purchase of an investment for

a common trust fund, nor shall it accumulate discount in respect of investments purchased

at less than face or par value, notwithstanding that the trust instrument may require

amortization of premiums or accumulation of discount. E. Money or other property paid by the bank as income from a common trust fund to

itself in its capacity as the fiduciary administering and managing a trust estate

shall, for the purpose of apportioning such income among the beneficiaries of the

trust estate, be deemed to be income to the trust estate as of the date of such payment,

regardless of the time when such income may have accrued, been earned, or accumulated. F. For the purposes of this article, an investment made pursuant to a commitment therefor

shall be deemed to be made on the date when the commitment was made.