New Jersey § 52:18a-8

§ 52:18a-8.

a. The State Treasurer is hereby authorized and empowered to enter into agreement from

time to time, and on the terms and for the compensation, if any, the State Treasurer deems appropriate, with any one or more of the national banks and the banks authorized by this State to carry on a banking business, which the State Treasurer may select, to act as fiscal agent for the State or as custodian for funds, securities,

or other assets of the State and as fiscal agent or as custodian for any pension agency, fund or system maintained in whole or in part by

the State. Each bank selected by the State Treasurer to act as custodian or fiscal agent shall

have a physical presence in this State in the form of a principal office or branch

office and shall employ New Jersey residents. Each bank selected by the State Treasurer may use recognized depositories or clearinghouses

for the funds, securities or other assets of the State or may use other banks as sub-custodians

or sub-fiscal agents for these assets, provided that in every case each bank selected

by the State Treasurer shall retain primary responsibility for these assets. b. If a bank selected by the State Treasurer delegates its responsibilities as custodian

or fiscal agent, or both, to a sub-custodian or sub-fiscal agent, the sub-custodian

or sub-fiscal agent shall be responsible for the services delegated to it to the same

degree as the primary custodian or primary fiscal agent and shall maintain accounting

records and be otherwise held accountable to the same degree of fiduciary duty and

responsibility as the appointing primary custodian or fiscal agent. c. A bank selected by the State Treasurer as a primary custodian or fiscal agent which

delegates its responsibilities as custodian or fiscal agent, or both, to a sub-custodian

or sub-fiscal agent, shall not be relieved of its fiduciary duties and responsibilities.