New Jersey § 3a:15-2

§ 3a:15-2.

FIDUCIARY MAY RELY ON FINANCIAL PUBLICATIONS a. A fiduciary, in determining whether any bond, debenture, stock or other security

or investment meets the requirements of section 3A:15-1 of this title or of a deed of trust, will on 1 order of court having jurisdiction, governing the making of the investment, may rely

and be fully protected in relying upon statistical, financial, corporate or other

information as to such bond, debenture, stock or other security, and upon ratings

or other opinion as to the financial or other status thereof, contained in or offered

by any financial, statistical, investment, rating or other publication or service

published for the use of and accepted as reliable by investors in like securities

or investments or upon a copy of the prospectus prepared and filed with the Securities

and Exchange Commission in connection with a new issue. DEFINITION OF FISCAL YEARS b. Wherever the term “fiscal years”, is mentioned in section 3A:15-1 of this title, a fiduciary may, at its option, use consecutive 12-month periods,

of the same total duration as the specified number of fiscal years, ending within

6 months next preceding the investment, and, if it elects to use other than fiscal

years, wherever the term “the fiscal year next preceding the investment” is mentioned,

it shall use the last 12-month period of such consecutive 12-month periods; in the

case of a new issue of bonds or preferred stock whenever a period of years is specified

in section 3A:15-1 of this title, such new issue shall be legal if the interest charges or preferred

dividend requirements as specified in section 3A:15-1 of this title would have been earned had such issue been outstanding during the period. DEFINITION OF COVERAGE c. Wherever in section 3A:15-1 of this title the requirement has been made as to the number of times fixed charges

or fixed charges and preferred dividends shall be earned, the charges and dividend

requirements on the amount of the debt or preferred stocks which have been called

for redemption or which otherwise mature within 12 months, and for the payment of

which funds have been set aside, shall be excluded from said computation. Whenever a new issue of bonds or preferred stock results in a change in the balance

sheet or earnings statement of a company as shown in pro forma statements a fiduciary

may use such pro forma statements in lieu of the last published statement or he may

prepare such statements from figures supplied in connection with such new issue and

if such statements meet the requirements of said section, such security shall be legal. APPLICATION OF THIS AND PRECEDING SECTION d. The provisions of sections 3A:15-1 and 3A:15-2 of this title shall apply notwithstanding the fact that the fiduciary was heretofore

appointed or the trust was heretofore created. 1

Probably should read “or”.