N.J. Admin. Code § 17:16-61.5 - Valuation of units

(a) The following method shall be used in determining the income value per unit:

1. Net income available for distribution shall equal the sum of daily interest income, daily discount income, realized gain on sales, and amortized discount, from which sum shall be deducted the sum of realized loss on sales, amortized premium and total daily expenses. Such net income available for distribution shall then be divided by the number of outstanding participating units to determine the daily income per unit of participation.

2. In the case of participating funds of counties, municipalities, school districts and agencies or authorities created by either such entities or the State (the "Other-than-State Funds"), daily income per unit of participation shall be further reduced by both a charge to establish a reserve and a charge for administrative expenses.

3. The charge to establish a reserve shall be in the sum of up to and not to exceed one-tenth of one percent per annum of the aggregate value of the units owned by the Other-than-State Funds, and the daily income per unit of participation owned by such Other-than-State Funds shall reflect their pro rata share of such sum. The reserve fund shall be a participating fund in the State of New Jersey Cash Management Fund and shall be credited with and will retain daily income per unit of participation in the manner of participating State funds. In the event of a loss occasioned by the bankruptcy of an issuer of a security held by the State of New Jersey Cash Management Fund, or a loss realized upon the sale of a security, such loss will be shared pro rata by all participants in the Fund, but the assets of the reserve fund will be applied pro rata in a manner approved by the Council to that portion of the loss accruing to the "Other-than-State Funds." In no event will the application of the assets of the reserve fund exceed the loss accruing to the Other-than-State Funds; and no State funds will share in the disposition of the assets of the reserve fund.

4. Similarly, the Other-than-State participants' pro rata share of any gains realized upon the sale of securities by the Fund should be credited to the reserve fund. The charge for administrative expenses shall be in the sum of up to and not to exceed one-tenth of one percent per annum of the aggregate value of the units owned by the Other-than-State Funds, and the daily income per participating unit owned by such Other-than-State Funds shall reflect their pro rata share of such sum. The charge for administrative expenses shall be paid into a fund whose assets shall be at the disposal of the Treasurer.

5. The method of calculation of each of the above terms will be in accordance with an agreement between the Treasurer and the custodian bank.

6. The aggregate of daily income per unit of participation on total units owned by each participant will be reinvested automatically in additional units at a price of $ 1.00 per unit and such new units will be credited to the respective accounts of all of the participants in proportion to their holdings of units of participation immediately prior to the determination of net income available for distribution. In the reinvestment of aggregate daily income as described above, fractional units may be issued representing fractions of a dollar, but no units will be issued representing fractions of one cent, nor will cash dividends be transmitted. Participating funds may obtain cash by redemption of units in accordance with N.J.A.C. 17:16-61.6.

(b) The net asset value per unit of participation shall remain at $ 1.00, except only in an instance where net income available for distribution might be negative, in which case the net asset value per unit would be reduced by each participant's proportionate share of such negative amount.

Notes

N.J. Admin. Code § 17:16-61.5

As amended, R.1980 d.235, eff. 7/1/1980.
See: 12 N.J.R. 436(a).
Amended by R.1985 d.554, effective 11/4/1985.
See: 17 N.J.R. 2095(a), 17 N.J.R. 2676(a).
Recodified from 31.11: Old 31.10 was "Guidelines for valuation of securities".
Amended by R.2001 d.119, effective 4/2/2001.
See: 33 N.J.R. 372(b), 33 N.J.R. 1115(a).
Substituted "N.J.A.C. 17:16-61.11" for "N.J.A.C. 17:16-31.11".
Recodified from N.J.A.C. 17:16-61.9 and amended by R.2006 d.317, effective 9/5/2006.
See: 38 N.J.R. 2039(a), 38 N.J.R. 3632(a).
Section was "Calculation of daily income per participating unit". Section combined with former N.J.A.C. 17:16-61.10, Reinvestment of daily income per participating unit, and substantially amended. Former N.J.A.C. 17:16-61.5, Permissible investments, recodified to N.J.A.C. 17:16-61.2.