ASSEMBLY, No. 1910

STATE OF NEW JERSEY

INTRODUCED MAY 6, 1996

By Assemblymen CARROLL, GARRETT, Assemblywoman Myers and Assemblyman Gregg

An Act concerning certain investments by surrogates and amending N.J.S.3B:15-16.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. N.J.S.3B:15-16 is amended to read as follows:

    3B:15-16. Deposit and investment

    Where the estate of a minor for whom a guardian has been or is to be appointed by a surrogate, consists of or is likely to consist of the proceeds of a judgment recovered in favor of the minor in any court of this State, the court, on application of the guardian or a person entitled to be appointed as guardian, by its order may dispense with the giving of a bond by the guardian where the order directs that the moneys be paid into the Superior Court for the benefit of the minor and that the moneys, or any part thereof, shall be deposited to the credit of the court in an interest-bearing account in, or in interest-bearing certificates of deposit of, a responsible bank, savings bank or trust company, or in an account in, or in interest-bearing certificates of deposit of, any savings and loan association of this State, or any federal savings and loan association, having its principal office in this State, the accounts of which are insured by the Federal [Savings and Loan] Deposit Insurance Corporation, designated by the court. Such monies may also be deposited to the credit of the court in an account with any person designated by the court who is authorized by law to invest monies in insured instruments and who maintains an office in this State.

(cf: N.J.S. 3B:15-16)

    2. This act shall take effect immediately.

STATEMENT

    Presently, when the estate of a minor consists of the proceeds of judgment and those proceeds are being held for the minor's benefit by a surrogate, the surrogate is authorized to invest those funds only with New Jersey banking institutions in interest-bearing accounts or in certificate of deposits. This bill would broaden the authority of surrogates with regard to the investment of theses funds and permit surrogates to invest such funds with any person authorized by law to invest in insured instruments who maintains an office in New Jersey.

Broadens authority of surrogates with regard to the investment of certain funds held for the benefit of minors.