New Jersey § 52:18a-90

§ 52:18a-90.

a. Notwithstanding the provisions of section 2 of P.L.1970, c. 270 ( C.52:18A-90.2 ), the Director of the Division of Investment may, subject to the approval of the

State Investment Council and the State Treasurer, establish, maintain and operate

a common trust fund to be known as the State of New Jersey Cash Management Fund in

which may be deposited the surplus public moneys of the State, its counties, municipalities

and school districts and the agencies or authorities created by any of these entities. This fund shall be considered a legal depository for public moneys and shall satisfy

the requirements in that regard of section 1 of P.L.1956, c. 174 ( C.52:18-16.1 ) and N.J.S.40A:5-14 . b. The State Treasurer shall be the custodian of the fund and may receive public moneys

paid into the fund by any other custodian of public moneys for the purpose of holding

and investing said moneys. In that capacity, he may enter into an agreement with any one or more of the national

banks and the banks authorized by this State to carry on a banking business, as he

may select, for the custodianship of securities held in the fund and for recording

the amounts deposited and withdrawn by each participant, the investment transactions

entered into, and the balance to each participant's credit each day. A bank selected by the State Treasurer as custodian pursuant to this section 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 securities held in the fund or may use other banks as sub-custodians or sub-fiscal

agents for these securities, provided that in every case each bank selected by the

State Treasurer shall retain primary responsibility for these securities. c. 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. d. 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. e. The State Treasurer may promulgate such rules and regulations pursuant to the “Administrative

Procedure Act,” P.L.1968, c. 410 ( C.52:14B-1 et seq. ), as he deems necessary for the efficient administration of the State of New Jersey

Cash Management Fund, including but not limited to, (1) the specification of minimum

amounts which may be deposited in the fund and minimum periods of time for which deposits

shall be retained in the fund; (2) creation of a reserve for losses; (3) provision

for payment of administration expenses from its earnings; and (4) distribution of

the earnings in excess of such expenses or allocation of losses to the several participants

in a manner which equitably reflects the differing amounts of their respective investments

and the differing periods of time for which such amounts were in the custody of the

fund. f. The Director of the Division of Investment may invest the public moneys constituting

the State of New Jersey Cash Management Fund in the same types of investments and

subject to the same limitations provided for the investment of funds in the State

Treasury. The director shall be responsible for the adequacy of the accounting services provided

by the custodian bank and shall maintain such accounting records as may be required

for that purpose. g. The Director of the Division of Investment may establish separate sub-funds within

the State of New Jersey Cash Management Fund or establish a separate fund where the

public moneys are invested in tax-exempt securities in order to segregate and account

for separately the investment of moneys from participants in the fund to comply with

federal law and regulations governing tax-exempt securities, provided however, that

such sub-funds or funds shall be subject to all laws and regulations that apply to

the New Jersey Cash Management Fund.