§ 35-8-404 — Perpetual care and maintenance trust fund

(a) Before any cell, vault, crypt, room or niche in any
community mausoleum or columbarium shall be sold, the person,
firm, partnership, association, company or corporation operating
the same shall first deposit the sum of ten thousand dollars
($10,000.00) in an institution acceptable to the insurance
commissioner, which sum shall be designated as a perpetual care
and maintenance trust fund and the income therefrom shall be
used for the preservation and upkeep of the mausoleum or
columbarium. The insurance commissioner shall regularly audit
the fund and shall be empowered to formulate and establish
regulations governing the fund and its trustee, which
regulations shall be designed to insure the permanence and
security of the fund. In the event that sales of cells, vaults,
crypts, rooms or niches exceed the sum of fifty thousand dollars
($50,000.00) the person, firm, partnership, association, company
or corporation operating the mausoleum or columbarium shall
deposit the following percentages of all sales exceeding that
amount in the perpetual care trust fund, which additional sums
shall be subject to the same regulations as the original
deposit:
(i) Twenty percent (20%) of the proceeds received
from the sale of each cell, vault, crypt, room or niche;
provided, however, that the deposit from the sale of a crypt
shall not be less than the sum of one hundred dollars ($100.00)
regardless of the sale price thereof;
(ii) Twenty percent (20%) of each payment or
installment received from the sale of every cell, vault, crypt,
room or niche in the event that a sale is made on a payment or
installment plan; provided, however, that the total amount
deposited from the sale of any crypt on the payment or
installment plan shall not be less than the sum of one hundred
dollars ($100.00) regardless of the sale price or the amount of
the payment or installment.
(b) In the event that any person, firm, partnership,
association, company or corporation operating a community
mausoleum, columbarium or structure shall fail to continue the
active management thereof, the trustee of the perpetual care and
maintenance fund established therefor shall continue to
administer the fund subject to audit and regulation by the
insurance commissioner and disburse the income for the care and
maintenance of the mausoleum or columbarium; provided, however,
that the district judge may, upon application made by the county
attorney of the county in which the mausoleum or columbarium is
located, and good cause shown, order the appointment of a
successor trustee and/or disbursement of the principal or
interest of the fund.