New Jersey § 52:18-16

§ 52:18-16.

The State Treasurer shall, except as otherwise provided, deposit to his credit as

treasurer all public moneys coming into his hands, within 3 days after receiving the

same, in such of the national banks located in this State, in institutions authorized

by this State to carry on a banking or savings and loan business, and in the State

of New Jersey Cash Management Fund established pursuant to section 1 of this amendatory

and supplementary act 1 as he may select, that will allow interest on all balances. In so doing, the treasurer shall from time to time, by public notice, offer at auction

State deposits and invite tenders therefor subject to such terms and conditions as

he may prescribe. All interest earned on deposits shall be credited to the State. When in the judgment of the State Treasurer it is not compatible with the working

capital requirements of the State or with public safety to deposit public moneys or

portion thereof, upon interest-bearing terms, as heretofore provided in this section,

the State Treasurer may deposit the same without interest or open-time accounts with

interest subject to withdrawal upon notice, conforming with Federal laws and regulations

governing the same, in such of the national banks located in this State and institutions

authorized by this State to carry on a banking or savings and loan business as he

may select, until such a condition has, in his judgment, ceased to exist. In all cases where a deposit is made in a national bank located in this State or institution

authorized by this State to carry on a banking or savings and loan business, pursuant

to this section, the State Treasurer shall require from any such institution a deposit

of bonds, notes, certificates of indebtedness or bills or other obligations of or

guaranteed by the United States; or bonds or other obligations of or guaranteed by

the State of New Jersey; or any other obligations now or hereafter authorized by

law as security for public deposits; designed to secure any deposit made pursuant

to this section; provided, that such requirement shall be deemed to be met if the

Federal Reserve Bank of New York or the Federal Reserve Bank of Philadelphia or any

other banking institution with total assets in excess of $300,000,000.00 located within

the Second or Third Federal Reserve Districts and approved for such purpose by the

State Treasurer certifies to the State Treasurer that, pursuant to authority given

by the depository, it holds obligations, owned by the depository, of the kind and

in the amount required by the State Treasurer to secure any such deposit. No bank shall be permitted to hold securities, of the kind hereinbefore described,

as security for public moneys on deposit in the same bank. No State or national bank or savings and loan association in which the State Treasurer

makes deposits of public moneys as above provided shall be required to secure such

deposits as required by this section, to the extent that such deposits are insured

by the Federal Deposit Insurance Corporation or by the Federal Savings and Loan Insurance

Corporation or by any other Federal agency which insures deposits made in state or

national banks or savings and loan associations. 1

N.J.S.A. § 1 of L.1977, c. 281 (See N.J.S.A. § 52:18A-90.4).