New Jersey Statutes Appendix - Former Title 3A Administration of Estates Decedents and Others 3A § 15-1

a. Stocks or bonds or interest-bearing notes or obligations of or guaranteed by the United States, or those for which the faith of the United States is distinctly pledged to provide for the payment of the principal and interest thereof;

b. Bonds or interest-bearing notes or other obligations of or guaranteed by this State or bonds authorized by its laws issued or to be issued by any commission appointed pursuant to any law of this State;

c. Bonds of any State in the Union or of any territory or insular possession of the United States issued by authority of the Legislature thereof, provided such State, territory or insular possession has not, within 120 days next preceding such investment, defaulted in the payment of any part of either principal or interest on any of its bonds so issued;

d. Bonds or interest-bearing notes or obligations of any county, city, town, township, borough, village or other municipal or political subdivision of this State issued under authority of a law of this State, or in bonds of any public school district, water district, union-graded school district or regional board of education of this State, or in refunding or renewal bonds of any such school district, water district or board of education issued under authority of a law of this State; provided, that at the time of making any such investment the issuer of such bonds shall not be in default in the payment of any principal of or interest upon any bonds issued by it;

e. Stocks, bonds, interest-bearing notes or obligations of any county, city, town, township, borough, village or school district of any other State of the Union issued pursuant to the authority of any law of such State; provided, that such county, city, town, township, borough, village or school district shall not have been in default in the payment of any principal or interest on any of its stocks, bonds, interest-bearing notes or obligations within 120 days next preceding such investment; provided, that such county shall have a population of not less than 20,000 and that any such city, town, township, borough, village or school district shall have a population of not less than 5,000;

f. Revenue bonds issued by a unit; provided, that the unit shall not, at the time of making the investment, be in default in the payment of principal or of interest on any of the revenue bonds issued by it or in the performance of any of the covenants, agreements or other provisions of the revenue bonds issued by it and shall not be in default with respect to any of the provisions or requirements of the enabling legislation relative to such revenue bonds; provided further, that such enabling legislation requires the unit to fix, maintain and collect for the utility service furnished by the unit charges adequate to pay the principal of and interest upon all revenue bonds payable from such revenues and to provide for the operation and maintenance of the utility including provision for all repairs and renewals, and all other charges and liens whatsoever payable from such revenues and to pledge a sufficient amount of such revenues for the payment of principal of and interest on such revenue bonds and other obligations of the unit having a lien or charge on such revenues equal to or prior to the lien or charge of the revenue bonds thereon. For the purposes of this paragraph: (1) “revenue bonds” mean any bonds, including refunding bonds, or other interest-bearing obligations of a unit for the payment of the principal of and interest on which the revenues derived from a utility owned or operated by the unit which issued such bonds or obligations, are pledged, or any such bonds or obligations additionally secured by a pledge of the taxing power or other revenues of the unit; (2) “unit” means a unit authorized to construct, own or operate a utility as “utility” is hereinafter defined and includes any State, any political subdivision of any State, any agency or instrumentality, corporate or otherwise, of any State or of any political subdivision of any State, including but not by way of limitation any county, city, town, township, village, authority, district, commission, agency or instrumentality of any State or of any political subdivision of any State, any commission, board, agency or other public body, corporate or otherwise, created by any Act of Congress or by any State, or pursuant to a compact between any 2 or more States or between any 2 or more political subdivisions, authorities, districts, commissions, agencies or instrumentalities of the same State, or between any 2 or more political subdivisions, authorities, districts, commissions, agencies or instrumentalities of any 2 or more States, or any corporation which is wholly owned, directly or indirectly by any of the foregoing; (3) “State” means any of the United States and any territory or insular possession of the United States; (4) “enabling legislation” means any act or resolution of Congress or of the Legislature of any State or of the Legislatures of any States, or any act, ordinance, resolution or other authorization by or of a unit or by or of the governing body of any unit, authorizing or providing for the issuance of revenue bonds, or any mortgage, trust deed, trust indenture, trust agreement or other instrument executed as security for revenue bonds; (5) “utility” means any waterworks system, gas system, electric light system, express or other highway or highways, bridge, tunnel, ferry or other public utility service or operation, or any combination of 2 or more of the foregoing; (6) “system” means a supply or generating system, transmission or distribution system or any combination of supply, generating, transmission or distribution systems, and all appurtenances thereof;

g. Bonds, notes or other interest-bearing obligations issued, guaranteed, or assumed by the Dominion of Canada or by any of the provinces of the Dominion of Canada;

j. Bonds secured by first mortgage on leasehold estates of real estate in this State of camp meeting associations; provided, however, that such real estate, except as to such leasehold, is free and clear of all liens and encumbrances of every kind and character whatsoever; provided further, that such leasehold at the time of the giving of said bond and mortgage has an unexpired term of not less than 25 years, and is a lease of the entire interest in such real estate, except the reversion thereof; provided further, that no investment shall be made in excess of 60% of the appraised value of such leasehold estate and the improvements thereon, which appraisement may be made by a committee of any savings bank, banking institution, trust company or insurance company, and, in the case of an individual, by 2 persons appointed by any such individual for such purpose; provided further, that any such camp meeting association shall consent to the giving of such bond and mortgage, subject, nevertheless, to all the conditions of the lease; provided further, that no savings bank, banking institution, trust company or insurance company, organized under the laws of this State, and no person acting as fiduciary shall make loans on leasehold estates of any such camp meeting association until the camp meeting association shall first have been approved for such purpose by the Commissioner of Banking and Insurance of the State of New Jersey;

k. Bonds, notes or other evidences of indebtedness of any public utility corporation organized under the laws of any State of the United States or of the District of Columbia or of the United States, not less than 70% of the gross operating revenues of which, on a consolidated basis, in the fiscal year next preceding such investment, was derived from operation of one or more of the following utility services, viz.: electric light or power, telephone or telegraph, steam, manufactured gas, natural gas or a mixture of manufactured and natural gas; provided, that the gross operating revenues of such corporation including predecessor and constituent corporations on a consolidated basis shall have averaged not less than $2,000,000.00 per annum for the 3 fiscal years next preceding such investment; provided further, that the net operating revenues of such corporation on a consolidated basis, including those of predecessor and constituent corporations, after all operating expenses and depreciation, but before State and Federal income and profits taxes, available for fixed charges for rentals and interest, shall have averaged annually for the 3 fiscal years next preceding such investment not less than 1 1/2 times the average annual requirements during such period for such fixed charges, subsidiary preferred stock dividends and minority interests excluding intercompany items;

l. The bonds, notes or other evidences of indebtedness issued guaranteed, or assumed by a public utility corporation organized and existing under the laws of any State of the United States or of the District of Columbia or of the United States not less than 80% of the revenues of which are, at the time of making such investment, derived from the sale of water to consumers through a distribution system owned or leased by it, or which such corporation has otherwise covenanted or agreed to pay or cause to be paid, whether by lease, indorsement, supplemental indenture or otherwise; provided, that the gross operating revenues of such corporation, including those of predecessor and constituent corporations, shall have averaged not less than $500,000.00 per annum for the 5 fiscal years next preceding such investment; provided further, that the net operating revenues of such corporation, including those of predecessor and constituent corporations, after all operating expenses but before deducting charges for depreciation, renewals and State and Federal income and profits taxes, available for fixed charges for rentals and interest on all outstanding debt, shall have averaged annually for the 3 fiscal years next preceding such investment, not less than 1 1/2 times the average annual requirement during such period for such fixed charges excluding intercompany items;

m. Preferred stocks issued, guaranteed, or assumed by a public utility corporation organized and existing under the laws of any State of the United States, or of the District of Columbia, or of the United States, not less than 70% of the gross operating revenues of which in the fiscal year next preceding such investment was derived from the operation of one or more of the following utility services, viz.: artificial gas, the sale of natural gas or of a mixture of natural and artificial gas, steam, electric light or power, telephone, telegraph, or water; provided, that such preferred stock shall be cumulative as to dividends and shall not be preceded, as to claim on dividends or assets of the corporation, in case of liquidation or dissolution, by any other class of stock; provided further, that the gross operating revenues on a consolidated basis of such corporation, including those of predecessor and constituent corporations, shall have averaged not less than $5,000,000.00 per annum for the 3 fiscal years next preceding such investment; provided further, that the mortgage bonds and debentures of the corporation, if such are outstanding, shall be legal investments under this chapter; provided further, that the net operating revenues of the corporation on a consolidated basis including those of predecessor and constituent corporations after all operating expenses, taxes and depreciation shall have averaged annually for the 3 fiscal years next preceding such investment not less than 1 1/2 times the average dividend requirements on such preferred stock, any other equally ranking preferred stock and for fixed charges for rentals and interest during such period, excluding intercompany items;

n. The bonds, notes or other evidences of indebtedness of any industrial corporation organized under the laws of any of the following: any State of the United States, the District of Columbia, the United States, the Dominion of Canada or any province of the Dominion of Canada; provided, that in each of the 3 fiscal years next preceding such investment, the gross revenues on a consolidated basis of the said industrial corporation shall not have been less than $10,000,000.00; provided further, that the balance of income available for the payment of interest, after deducting all operating expenses, depreciation and taxes, except State, Federal, or provincial income and profits taxes, shall have averaged annually for the 5 fiscal years next preceding such investment, twice the average annual interest charges; provided further, either that the current assets of said industrial corporation on a consolidated basis, as shown by its latest published statement prior to the making of such investment, shall be at least 1 1/2 times the current liabilities, or that the difference between the current assets and current liabilities, represented as net current assets or net working capital, as shown by such latest published statement, shall not be less than the total indebtedness of the corporation, excluding any indebtedness included among the current liabilities;

o. Preferred stocks of any industrial corporation organized under the laws of any State of the United States or of the District of Columbia or of the United States; provided, that such preferred stock shall be cumulative as to dividends; provided further, that in each of the 3 fiscal years next preceding such investment, the gross revenues of the said industrial corporation on a consolidated basis shall not have been less than $10,000,000.00; provided further, that the balance of income available for the payment of interest and dividends on such preferred stock and on any other preferred stock ranking equally with or senior to such preferred stock together, after deducting all operating expenses, depreciation and taxes, shall have averaged annually for the 5 fiscal years next preceding such investment, 2 1/2 times the average annual interest charges and preferred dividend requirements on such preferred stock and on all senior and equally ranking preferred stocks; provided further, either that the current assets of said industrial corporation on a consolidated basis, as shown by its latest published statement prior to the making of such investment, shall be at least 1 1/2 times the current liabilities or that the difference between the current assets and current liabilities, represented as net current assets or net working capital, as shown by such latest published statement, shall not be less than the total indebtedness of the corporation and all equally ranking and senior preferred stocks together, excluding any indebtedness included among the current liabilities;

p. Bonds issued by a joint stock land bank authorized to do business in this State or by a Federal Land Bank, organized pursuant to an Act of Congress entitled “An act to provide capital for agricultural development, to create standard forms of investment based upon farm mortgage, to equalize rates of interest upon farm loans, to furnish a market for United States bonds, to create government depositaries and financial agents for the United States, and for other purposes”, approved July 17, 1916 (12 U.S.C.A. § 641 et seq.);

Consolidated bonds of the twelve Federal Land Banks issued under and pursuant to the above-mentioned Act of Congress as now or hereafter amended and known as the “Federal farm loan act”;

q. Interest-bearing time certificates of deposit of, or by making interest-bearing time deposits in a banking institution as defined in section 1 of chapter 67 of the laws of 1948 (The Banking Act of 1948), including, where the fiduciary is such a banking institution, such certificates of deposit of such banking institution itself or such deposits with itself in its banking department; provided, that the amount of each such certificate of deposit and the amount of each such deposit is insured in full, pursuant to any law of the United States providing for the insurance of deposits in banking institutions;

r. Any loans or securities which are or hereafter may be made lawful investments under the statutes of this State, for savings banks of this State;

s. Shares of or accounts in savings and loan associations organized under the laws of this State, or Federal savings and loan associations organized under the laws of the United States, the principal office of which is located in New Jersey; provided, that the accounts of the association whether State or Federally chartered are insured by the Federal Savings and Loan Insurance Corporation, pursuant to Title 4 of an Act of Congress entitled “national housing act”; approved June 27, 1934 (12 U.S.C.A. § 1724 et seq.), supplemented or amended, or by any other corporation created or organized under the laws of the United States, which corporation is an instrumentality of the United States; provided, however, that such investment shall not exceed the aggregate amount for which any member or investor of any such association shall be insured;

t. Bonds secured by mortgage, which shall be a first lien upon real estate, the title to which shall have been secured by the owner or prior owners through a certificate of tax sale foreclosed in the former Court of Chancery or the Superior Court of New Jersey; provided, the real estate shall be estimated to be worth at least twice the amount loaned, and the rate of interest is not less than 3% nor greater than 6% the legal rate per annum;

u. Shares or parts of bonds secured by mortgage or bonds secured by trust mortgage; and participation certificates or coupon bonds which entitle the holder to a proportionate share in a series or number of mortgages and bonds, or extensions or renewals thereof, deposited under a trust agreement with a trust company, bank or title guarantee corporation organized under the laws of this State, or a national bank authorized to do business in this State; provided, that the securities authorized in this paragraph u shall be a first lien upon improved real estate and the amount secured by the mortgages shall not, at the time the loan is made, exceed 60% of the estimated worth of the real estate covered by the respective mortgages and the rate of interest not less than three nor greater than 6% the legal rate per annum; and provided further, that no share or part of such bonds and mortgages or bonds secured by such trust mortgage shall be subordinate to any other bonds issued thereunder or subordinate to any prior interest therein; and provided further, that bonds and mortgages in parts of which a fiduciary invests trust funds or, in the case of trust mortgages, the trust mortgage, together with any guarantees of payment, insurance policies and other instruments and evidences of title relating thereto, shall be held for the benefit of the fiduciary and any other persons interested therein, by a trust company, bank or title guarantee corporation authorized to do business in this State, or jointly by such a corporation and an individual who is a citizen and bona fide resident of this State, and, in mortgages other than trust mortgages, there shall be executed by such corporation and delivered to each person who becomes interested in the bond and mortgage, a certificate stating that the corporation, or corporation and individual jointly, as the case may be, holds the instruments for the benefit of the fiduciary and any other persons therein interested, among whom may be included the aforesaid corporation or individual. A corporation or a corporation and an individual jointly, issuing certificates pursuant to this paragraph, shall keep a record in proper books of account of all such certificates issued by it.

v. The provisions of this section shall not apply where any trust instrument, will, or court having jurisdiction of the matter, specially directs in what securities or investments the trust fund shall be invested. The court to which the fiduciary is accountable shall have the power specially to direct, from time to time, additional securities or investments in which he may invest. An investment made in accordance with such special directions shall be legal, and no fiduciary shall be liable for loss occasioned by his compliance therewith.