New Jersey would require approved institutions to hold lawsuit money

The Attorney General would arrange the deposits in consultation with the State Treasurer. The requirement covers lawsuit payments when the Attorney General or counsel retained by that office represents the state, a local government, or a public agency. An institution must keep at least 15 percent of its total deposits in New Jersey and have at least $1 billion in total deposits. It must have state authorization and approval, plus experience holding money for others. It could not accept covered lawsuit proceeds exceeding 10 percent of its total deposits. In cases involving multiple jurisdictions or groups of claimants, the requirement covers only proceeds recoverable by the Attorney General and preserves other parties' rights. The requirement would take effect immediately if the bill becomes law.