§ 20-17-1014 — Permanent maintenance fund trustees

(a) The net income from the permanent maintenance fund shall only be used for general maintenance, administration, and preservation of the perpetual care cemetery. (b) (1) A cemetery company shall establish a permanent maintenance fund with or transfer the permanent maintenance fund to: (A) A state or national bank or federal savings bank with trust powers; (B) (i) Three (3) trustees. (ii) If the cemetery company has a permanent maintenance fund with three (3) trustees as described in subdivision (b)(1)(B)(i) of this section, the trustees shall: (a) Designate one (1) of the three (3) trustees to make disbursements from the trust fund; and (b) The disbursing trustee described in subdivision (b)(1)(B)(ii) (a) of this section shall deposit with the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services a fidelity bond with corporate surety payable to the trust fund in a penal sum not less than eighty percent (80%) of the value of the trust fund principal at the beginning of each calendar year. (iii) If a cemetery company has a permanent maintenance fund with three (3) trustees as described in subdivision (b)(1)(B)(i) of this section, no more than one (1) of the trustees may have a direct or indirect financial interest in the perpetual care cemetery; or (C) An individual trustee who: (i) Shall deposit with the board a fidelity bond with corporate surety payable to the trust fund in a penal sum not less than eighty percent (80%) of the value of the trust fund principal at the beginning of each calendar year; and (ii) On behalf of the cemetery company shall deposit all permanent maintenance funds directly into a savings account or certificate of deposit in a state or national bank or savings and loan association in this state not less than forty-five (45) days after collection if: (a) The funds deposited are federally insured; (b) The funds are restricted to prevent the principal amount of the funds from being withdrawn without the written approval of and on a form approved by the board; and (c) Not less than one (1) time per year the net income from the funds may be withdrawn by the individual trustee on behalf of the cemetery company for purposes permitted by this subchapter. (2) If a permanent maintenance fund of a cemetery contains less than ten thousand dollars ($10,000), a bond is not required when a cemetery has designated trustees under subdivision (b)(1)(B) or subdivision (b)(1)(C) of this section. (c) (1) The board may require a trustee who fails to protect the principal of the permanent maintenance fund under § 20-17-1013 to pay an additional contribution to the permanent maintenance fund of twenty-five dollars ($25.00) per day for each day that the principal is deficient. (2) The additional contribution made under subdivision (c)(1) of this section shall not exceed a total of one thousand dollars ($1,000) for a continuous violation.

Legislative History

Amended by Act 2021, No. 731,§ 9, eff. 7/28/2021. Amended by Act 2017, No. 788,§ 46, eff. 7/1/2018. Amended by Act 2017, No. 788,§ 45, eff. 7/1/2018. Amended by Act 2013, No. 390,§ 5, eff. 8/16/2013. Acts 1977, No. 352, § 13; A.S.A. 1947, § 82-426.13; Acts 2011, No. 590, § 5; 2011, No. 1148, § 1.