Section 27-17A-40 Applicability of article. To comply with the trust requirement of subsection (a) of Section 27-17A-13, all certificate holders who are cemetery authorities providing preneed contracts for cemetery services or cemetery merchandise shall be subject to this article. (Act 2002-74, p. 221, §1; Act 2014-216, p. 653, §3.)
Section 27-17A-41 Trust fund; trustee; interests of purchaser; seller. (a) Any person who receives or collects any funds on account of a preneed contract in this state for cemetery services or cemetery merchandise, or both, entered into after May 1, 2002, shall have the obligation to pay over and contribute into a trust fund as […]
Section 27-17A-42 Trust contributions; trustee responsibilities; withdrawals; analysis and certification by seller. (a) The obligation of the seller under a preneed contract shall be to make contributions into the Cemetery Merchandise and Services Trust Fund in accordance with the following formulae: (1) With respect to all cemetery merchandise, 110 percent of wholesale cost. (2) With […]
Section 27-17A-43 Cancellation of contract; withdrawal from trust fund. (a) Upon cancellation of a preneed contract by mutual agreement between the seller and purchaser, or upon unilateral cancellation of a preneed contract by the seller by reason of default on the part of the purchaser, or other valid cancellation by reason of transfers to another […]
Section 27-17A-44 Rights of seller. If the amounts paid by the purchaser under a preneed contract for cemetery merchandise have previously been deposited in trust, the seller may withdraw the principal amount there, at such time as the cemetery merchandise is delivered or installed or, if comprised of materials designed to withstand prolonged, protected storage […]
Section 27-17A-45 Endowment care fund. An endowment care fund and all payments or contributions to it are expressly permitted as and for charitable and eleemosynary purposes. No payment, gift, grant, bequest, or other contribution for endowment care is invalid by reason of any indefiniteness or uncertainty of the persons designated as beneficiaries in the instruments […]
Section 27-17A-46 Endowment care cemeteries. Any cemetery now existing or hereafter established, excluding those operated by governmental agencies or religious institutions, shall be an endowment care cemetery, except those which do not charge fees. (Act 2002-74, p. 221, §1.)
Section 27-17A-47 Establishment and management of endowment care fund. (a) Every cemetery authority operating an endowment care cemetery shall establish an endowment care fund which shall be placed with and held by a bank, trust company, savings and loan association, or other financial institution authorized to provide trust services under Title 5, as amended, or […]
Section 27-17A-48 Maintenance of records. (a) Each cemetery authority shall maintain at each place of business a list of the names and addresses of its owners and directors, which shall be available to the public. (b) Each cemetery authority shall maintain a record of all property owners by name and last known address with a […]
Section 27-17A-49 Endowment care fund deposits; qualification as endowment care cemetery. (a) From the sale price of each plot, crypt, or niche sold by the cemetery authority, of an endowment care cemetery, it shall pay an amount, not less than as determined in accordance with the following schedule, to the trustee of the endowment care […]
Section 27-17A-50 Financial interest in asset or business in which endowment care trust invests, etc.; disposition of funds. (a) No cemetery authority may directly or indirectly require or direct the investment, reinvestment, or retention by a qualified trustee of any part of an endowment care trust in any asset or business in which the cemetery […]
Section 27-17A-51 Propriety of expenditures; income payments to cemetery authority. The trustee shall not be required to inquire into the propriety of the expenditures made by the cemetery authority in connection with endowment care of the cemetery, and it shall not be held responsible in any manner whatsoever for and on account of payments of […]
Section 27-17A-52 Disclosure of activities and statement of investments. The trustee shall, not less than annually, file with the cemetery authority an account which shall include a complete disclosure of all activity since the previous account and a statement detailing fund investments. (Act 2002-74, p. 221, §1.)
Section 27-17A-53 Disposal of assets or investments. To the extent that any endowment care trust existing on May 1, 2002, includes investments or assets, the retention of which the trustee in the free exercise of its discretion deems not in the best interest of the trust estate, the trustee shall dispose of the investments or […]
Section 27-17A-54 Annual report. An annual report of the endowment care fund shall be made to the commissioner by each cemetery authority within 90 days of the close of each calendar year. This report shall include the qualified trustee’s name or names, the bond numbers if individual trustees or the name and address of the […]
Section 27-17A-55 Construction of mausoleum, etc. A cemetery authority shall start construction of that section of a mausoleum or bank of below-ground crypts in which sales, contracts for sale, reservations for sale, or agreements for sale are being made, within five years after the date of the first sale or when 75 percent of the […]
Section 27-17A-56 Rules and regulations. (a) Cemetery rules and regulations are adopted for the mutual protection of the cemetery owners and the owners of interment rights in the cemetery. All owners of interment rights and other persons within the cemetery shall be subject to these rules and regulations as they now exist and as they […]
Section 27-17A-57 Jurisdiction of commissioner. The commissioner shall have the same jurisdiction over funeral establishments, funeral directors, cemetery authorities, or third party sellers who sell preneed contracts without a preneed certificate of authority as he or she has over those preneed sellers who possess a preneed certificate of authority. (Act 2014-216, p. 653, §4.)
