New Jersey § 18a:71a-24

§ 18a:71a-24.

a. Within the Higher Education Student Assistance Fund, the authority shall establish

and maintain a special fund called the “Loan Reserve Fund” in which shall be deposited:

(1) all reserve funds held by the authority; (2) all moneys appropriated by the State

for the purpose of the fund, and (3) any other moneys or funds of the authority which

it determines to deposit therein. Moneys in the Loan Reserve Fund shall be held and approved solely for the purchase

by the fund of defaulted loans either by payment to a lender or by transfer to the

Higher Education Student Assistance Fund, of the total amount of principal and interest

then due and owing on any defaulted note, except to the extent that the moneys represent

advances made to the authority by the United States of America, or agencies thereof,

which the authority may be required to repay, and in the event repayment is required,

it shall be made from the Loan Reserve Fund. b. The sum total of all funds on deposit in the Loan Reserve Fund, hereafter referred

to as the “loan reserve requirement,” shall in no event be less than the amount required

under 20 U.S.C.s.1071 et seq. c. In order to assure the maintenance of the loan reserve requirement in the Loan

Reserve Fund, there shall be appropriated annually and paid to the authority for deposit

in the fund, such sum, if any, as shall be certified by the chairperson of the Board

of the Higher Education Student Assistance Authority to the Governor as necessary

to maintain the fund in an amount equal to the loan reserve requirement during the

then current fiscal year. The chairperson shall annually, on or before December 1, make and deliver to the

Governor a certificate stating the sums, if any, required to maintain the fund in

the amount equal to the loan reserve requirement, and the sum or sums so certified

shall be appropriated and paid to the authority during the then current State fiscal

year. d. Moneys in the fund at any time in excess of the loan reserve requirement, whether

by reason of investment or otherwise, may be withdrawn at any time by the authority

and transferred to any other fund or account of the authority, to the extent permitted

under 20 U.S.C.s.1071 et seq. e. Moneys at any time in the Loan Reserve Fund may be invested in any direct obligations

of, or obligations as to which the principal and interest thereof is guaranteed by,

the United States of America or such other obligations as the authority may approve,

to the extent permitted under 20 U.S.C.s.1071 et seq. f. For purposes of valuation, investments in the Loan Reserve Fund shall be valued

at the lowest of the par value, cost to the authority, or market value of the investments. Valuation on any particular date shall include the amount of interest then earned

or accrued to the date on any moneys or investments in the Loan Reserve Fund.