§ 65‑66. Receipts fromsale of personal property or services; trust account; penalties.
(a) It shall be deemedcontrary to public policy if any person or legal entity receives, holds,controls or manages funds or proceeds received from the sale of, or from acontract to sell, personal property or services which may be used in a cemeteryin connection with the burial of or the commemoration of the memory of adeceased human being, where payments for the same are made either outright oron an installment basis prior to the demise of the person or persons sopurchasing them or for whom they are so purchased, unless such person or legalentity holds, controls or manages said funds, subject to the limitations andregulations prescribed in this section. This section shall apply to allcemetery companies or other legal entities that offer for sale or sell personalproperty or services which may be used in a cemetery in connection with theburial of, or the commemoration of the memory of, a deceased human being, butshall exclude persons holding a license under Article 13D of Chapter 90 of theGeneral Statutes.
(b) Any cemeterycompany or other entity entering into a contract for the sale of personalproperty or services, to be used in a cemetery in connection with disposing of,or commemorating the memory of a deceased human being wherein the use of thepersonal property or the furnishing of services is not immediately requested orrequired, shall comply with the following requirements and conditions:
(1) The cemetery companyor other entity shall deposit an amount equal to sixty percent (60%) of allproceeds received on such contracts into a trust account, either in the form ofan account governed by a trust agreement and handled by a corporate trustee orin the form of a passbook savings account, certificates of deposit for timecertificates, and/or money‑market certificates with a licensed andinsured bank or savings institution located in the State of North Carolinauntil the amount deposited equals sixty percent (60%) of the actual sale priceof the property or services sold. Such accounts and/or deposits shall be in thename of the cemetery company or other entity in a form which will permitwithdrawals only with the participation and consent of the Cemetery Commissionas required by subdivision (4) of this subsection.
(2) All funds receivedon account of a contract for the sale of such personal property or services,whether the funds be received directly from the purchaser or from the sale orassignment of notes entered into by the purchase or otherwise, shall bedeposited into the trust account as required by subdivision (1) of thissection.
(3) All depositsrequired herein shall be made into the trust account so established on orbefore the last day of the month following receipt of the funds by the cemeterycompany or other entity.
(4) Withdrawals from atrust account may be made by the depositor, but only with the written approvalof the Commission or officer or employee of the Commission authorized to actfor the Commission. Withdrawals may be made only upon delivery of themerchandise or services for which the funds were deposited, cancellation of acontract, the presence of excess funds in the trust account, or under othercircumstances deemed appropriate by the Commission. The Commission shallpromulgate rules and regulations governing withdrawals from trust accounts,including time and frequency of withdrawals, notice to the Commission prior towithdrawals, the number and identity of persons other than the owner who areauthorized by the owner to make withdrawals, the officers and employees of theCommission authorized to approve withdrawals, and any other matters necessaryto implement the provisions of this subdivision. Withdrawals will not beallowed if the amount remaining in the trust account would fall below sixtypercent (60%) of all proceeds received on account of contracts for the sale ofsuch personal property or services.
(5) If for any reason acemetery company or other entity who has entered into a contract for the saleof personal property or services cannot or does not provide the personalproperty or perform the services called for by the contract after request inwriting to do so, the purchaser or his heirs or assigns or duly authorizedrepresentative shall be entitled to receive the entire amount paid on thecontract and any income if any, earned thereon by the trust account.
(6) Every year afterSeptember 1, 1975, the cemetery company, the trustee or other entity shallwithin 75 days after the end of the calendar year, file a financial report ofthe trust funds with the Commission, setting forth the principal thereof, theinvestments and payments made, the income earned and disbursed; provided,however, that the Commission may require the cemetery, trustee, or other entityto make such additional financial reports as it may deem advisable.
(c) Whenever a contractfor the sale of personal property and/or services allocates payments to applyto one item at a time under a specific schedule, the contract shall beconsidered divisible. Title to each item of personal property or the right toeach item of services shall pass to the purchaser upon full payment for thatitem regardless of the remaining balance on other items under the samecontract.
(d) Any contract forthe sale of personal property and/or services shall state separate costs foreach item of personal property, for each act of installation required by thecontract, and for each other item of services included in the contract.
(e) All contracts forthe sale of personal property and/or services must be printed in type size asrequired by the Truth in Lending Act, 15 U.S.C. § 1601 et seq., and regulationsadopted pursuant to that act.
(f) In the event ofprepayment, interest charged shall be no more than the interest earned on theunpaid balance computed on a percent per month basis for each month or part ofa month up to the date of final payment. Any excess interest which has beenpaid by the purchaser must be refunded to him, his assigns, or hisrepresentative within 30 days after the final payment. No penalty or additionalcharge for prepayment may be required.
(g) In lieu of thedeposits required under subsection (b) of this section, the cemetery company orother entity may post with the Commission a good and sufficient performancebond by surety company licensed to do business in North Carolina and in anamount sufficient to cover all payments made directly or indirectly by or onaccount of purchasers who have not received the purchased property andservices. Money received from the sale or assignment of notes entered into bythe purchasers, or otherwise, shall be treated as payments made by thepurchasers.
(h) The Commissionshall have the power and is required from time to time as it may deem necessaryto examine the business of any cemetery company or other entity writingcontracts for the sale of the property or services as herein contemplated. Thewritten report of such examination shall be filed in the office of theCommission. Any person or entity being examined shall produce the records ofthe company needed for such examination.
(i) Any provision ofany contract for the sale of the personal property or the performance ofservices herein contemplated under which the purchaser or beneficiary waivesany of the provisions of this section shall be void.
(j) Repealed bySession Laws 1991, c. 653, s. 7.
(k) Nothing in thissection shall apply to persons or legal entities holding licenses under Article13D of Chapter 90 of the General Statutes when engaging in activities for whicha license is required under that Article.
(l) If any report isnot received within the time stipulated by the Commission or herein, theCommission may levy and collect a late filing fee of twenty‑five dollars($25.00) per month for each month of delinquency.
(m) Within 30 daysfollowing the execution of a contract for the sale of personal property orperformance of services, a purchaser may cancel his contract by giving writtennotice to the seller. The seller may cancel the contract, upon default bypurchaser, by giving written notice to the purchaser. Within 30 days of noticeof cancellation, the cemetery company or other entity shall refund to purchaserthe principal amount on deposit in the trust account for his benefit on anyundelivered merchandise or services. This amount (no other obligations owed thepurchaser by the seller) shall constitute the purchaser's entire entitlementsunder the contract. The seller may not terminate the contract without complyingwith this subsection. (1975, c. 768, s. 1; 1979, c. 888, s. 7; 1987, c. 488, s. 7; 1991, c.653, s. 7; 1995, c. 509, s. 135.1(j), (k); 2004‑202, s. 9.)
§ 65‑66. Receipts fromsale of personal property or services; trust account; penalties.
(a) It shall be deemedcontrary to public policy if any person or legal entity receives, holds,controls or manages funds or proceeds received from the sale of, or from acontract to sell, personal property or services which may be used in a cemeteryin connection with the burial of or the commemoration of the memory of adeceased human being, where payments for the same are made either outright oron an installment basis prior to the demise of the person or persons sopurchasing them or for whom they are so purchased, unless such person or legalentity holds, controls or manages said funds, subject to the limitations andregulations prescribed in this section. This section shall apply to allcemetery companies or other legal entities that offer for sale or sell personalproperty or services which may be used in a cemetery in connection with theburial of, or the commemoration of the memory of, a deceased human being, butshall exclude persons holding a license under Article 13D of Chapter 90 of theGeneral Statutes.
(b) Any cemeterycompany or other entity entering into a contract for the sale of personalproperty or services, to be used in a cemetery in connection with disposing of,or commemorating the memory of a deceased human being wherein the use of thepersonal property or the furnishing of services is not immediately requested orrequired, shall comply with the following requirements and conditions:
(1) The cemetery companyor other entity shall deposit an amount equal to sixty percent (60%) of allproceeds received on such contracts into a trust account, either in the form ofan account governed by a trust agreement and handled by a corporate trustee orin the form of a passbook savings account, certificates of deposit for timecertificates, and/or money‑market certificates with a licensed andinsured bank or savings institution located in the State of North Carolinauntil the amount deposited equals sixty percent (60%) of the actual sale priceof the property or services sold. Such accounts and/or deposits shall be in thename of the cemetery company or other entity in a form which will permitwithdrawals only with the participation and consent of the Cemetery Commissionas required by subdivision (4) of this subsection.
(2) All funds receivedon account of a contract for the sale of such personal property or services,whether the funds be received directly from the purchaser or from the sale orassignment of notes entered into by the purchase or otherwise, shall bedeposited into the trust account as required by subdivision (1) of thissection.
(3) All depositsrequired herein shall be made into the trust account so established on orbefore the last day of the month following receipt of the funds by the cemeterycompany or other entity.
(4) Withdrawals from atrust account may be made by the depositor, but only with the written approvalof the Commission or officer or employee of the Commission authorized to actfor the Commission. Withdrawals may be made only upon delivery of themerchandise or services for which the funds were deposited, cancellation of acontract, the presence of excess funds in the trust account, or under othercircumstances deemed appropriate by the Commission. The Commission shallpromulgate rules and regulations governing withdrawals from trust accounts,including time and frequency of withdrawals, notice to the Commission prior towithdrawals, the number and identity of persons other than the owner who areauthorized by the owner to make withdrawals, the officers and employees of theCommission authorized to approve withdrawals, and any other matters necessaryto implement the provisions of this subdivision. Withdrawals will not beallowed if the amount remaining in the trust account would fall below sixtypercent (60%) of all proceeds received on account of contracts for the sale ofsuch personal property or services.
(5) If for any reason acemetery company or other entity who has entered into a contract for the saleof personal property or services cannot or does not provide the personalproperty or perform the services called for by the contract after request inwriting to do so, the purchaser or his heirs or assigns or duly authorizedrepresentative shall be entitled to receive the entire amount paid on thecontract and any income if any, earned thereon by the trust account.
(6) Every year afterSeptember 1, 1975, the cemetery company, the trustee or other entity shallwithin 75 days after the end of the calendar year, file a financial report ofthe trust funds with the Commission, setting forth the principal thereof, theinvestments and payments made, the income earned and disbursed; provided,however, that the Commission may require the cemetery, trustee, or other entityto make such additional financial reports as it may deem advisable.
(c) Whenever a contractfor the sale of personal property and/or services allocates payments to applyto one item at a time under a specific schedule, the contract shall beconsidered divisible. Title to each item of personal property or the right toeach item of services shall pass to the purchaser upon full payment for thatitem regardless of the remaining balance on other items under the samecontract.
(d) Any contract forthe sale of personal property and/or services shall state separate costs foreach item of personal property, for each act of installation required by thecontract, and for each other item of services included in the contract.
(e) All contracts forthe sale of personal property and/or services must be printed in type size asrequired by the Truth in Lending Act, 15 U.S.C. § 1601 et seq., and regulationsadopted pursuant to that act.
(f) In the event ofprepayment, interest charged shall be no more than the interest earned on theunpaid balance computed on a percent per month basis for each month or part ofa month up to the date of final payment. Any excess interest which has beenpaid by the purchaser must be refunded to him, his assigns, or hisrepresentative within 30 days after the final payment. No penalty or additionalcharge for prepayment may be required.
(g) In lieu of thedeposits required under subsection (b) of this section, the cemetery company orother entity may post with the Commission a good and sufficient performancebond by surety company licensed to do business in North Carolina and in anamount sufficient to cover all payments made directly or indirectly by or onaccount of purchasers who have not received the purchased property andservices. Money received from the sale or assignment of notes entered into bythe purchasers, or otherwise, shall be treated as payments made by thepurchasers.
(h) The Commissionshall have the power and is required from time to time as it may deem necessaryto examine the business of any cemetery company or other entity writingcontracts for the sale of the property or services as herein contemplated. Thewritten report of such examination shall be filed in the office of theCommission. Any person or entity being examined shall produce the records ofthe company needed for such examination.
(i) Any provision ofany contract for the sale of the personal property or the performance ofservices herein contemplated under which the purchaser or beneficiary waivesany of the provisions of this section shall be void.
(j) Repealed bySession Laws 1991, c. 653, s. 7.
(k) Nothing in thissection shall apply to persons or legal entities holding licenses under Article13D of Chapter 90 of the General Statutes when engaging in activities for whicha license is required under that Article.
(l) If any report isnot received within the time stipulated by the Commission or herein, theCommission may levy and collect a late filing fee of twenty‑five dollars($25.00) per month for each month of delinquency.
(m) Within 30 daysfollowing the execution of a contract for the sale of personal property orperformance of services, a purchaser may cancel his contract by giving writtennotice to the seller. The seller may cancel the contract, upon default bypurchaser, by giving written notice to the purchaser. Within 30 days of noticeof cancellation, the cemetery company or other entity shall refund to purchaserthe principal amount on deposit in the trust account for his benefit on anyundelivered merchandise or services. This amount (no other obligations owed thepurchaser by the seller) shall constitute the purchaser's entire entitlementsunder the contract. The seller may not terminate the contract without complyingwith this subsection. (1975, c. 768, s. 1; 1979, c. 888, s. 7; 1987, c. 488, s. 7; 1991, c.653, s. 7; 1995, c. 509, s. 135.1(j), (k); 2004‑202, s. 9.)
§ 65‑66. Receipts fromsale of personal property or services; trust account; penalties.
(a) It shall be deemedcontrary to public policy if any person or legal entity receives, holds,controls or manages funds or proceeds received from the sale of, or from acontract to sell, personal property or services which may be used in a cemeteryin connection with the burial of or the commemoration of the memory of adeceased human being, where payments for the same are made either outright oron an installment basis prior to the demise of the person or persons sopurchasing them or for whom they are so purchased, unless such person or legalentity holds, controls or manages said funds, subject to the limitations andregulations prescribed in this section. This section shall apply to allcemetery companies or other legal entities that offer for sale or sell personalproperty or services which may be used in a cemetery in connection with theburial of, or the commemoration of the memory of, a deceased human being, butshall exclude persons holding a license under Article 13D of Chapter 90 of theGeneral Statutes.
(b) Any cemeterycompany or other entity entering into a contract for the sale of personalproperty or services, to be used in a cemetery in connection with disposing of,or commemorating the memory of a deceased human being wherein the use of thepersonal property or the furnishing of services is not immediately requested orrequired, shall comply with the following requirements and conditions:
(1) The cemetery companyor other entity shall deposit an amount equal to sixty percent (60%) of allproceeds received on such contracts into a trust account, either in the form ofan account governed by a trust agreement and handled by a corporate trustee orin the form of a passbook savings account, certificates of deposit for timecertificates, and/or money‑market certificates with a licensed andinsured bank or savings institution located in the State of North Carolinauntil the amount deposited equals sixty percent (60%) of the actual sale priceof the property or services sold. Such accounts and/or deposits shall be in thename of the cemetery company or other entity in a form which will permitwithdrawals only with the participation and consent of the Cemetery Commissionas required by subdivision (4) of this subsection.
(2) All funds receivedon account of a contract for the sale of such personal property or services,whether the funds be received directly from the purchaser or from the sale orassignment of notes entered into by the purchase or otherwise, shall bedeposited into the trust account as required by subdivision (1) of thissection.
(3) All depositsrequired herein shall be made into the trust account so established on orbefore the last day of the month following receipt of the funds by the cemeterycompany or other entity.
(4) Withdrawals from atrust account may be made by the depositor, but only with the written approvalof the Commission or officer or employee of the Commission authorized to actfor the Commission. Withdrawals may be made only upon delivery of themerchandise or services for which the funds were deposited, cancellation of acontract, the presence of excess funds in the trust account, or under othercircumstances deemed appropriate by the Commission. The Commission shallpromulgate rules and regulations governing withdrawals from trust accounts,including time and frequency of withdrawals, notice to the Commission prior towithdrawals, the number and identity of persons other than the owner who areauthorized by the owner to make withdrawals, the officers and employees of theCommission authorized to approve withdrawals, and any other matters necessaryto implement the provisions of this subdivision. Withdrawals will not beallowed if the amount remaining in the trust account would fall below sixtypercent (60%) of all proceeds received on account of contracts for the sale ofsuch personal property or services.
(5) If for any reason acemetery company or other entity who has entered into a contract for the saleof personal property or services cannot or does not provide the personalproperty or perform the services called for by the contract after request inwriting to do so, the purchaser or his heirs or assigns or duly authorizedrepresentative shall be entitled to receive the entire amount paid on thecontract and any income if any, earned thereon by the trust account.
(6) Every year afterSeptember 1, 1975, the cemetery company, the trustee or other entity shallwithin 75 days after the end of the calendar year, file a financial report ofthe trust funds with the Commission, setting forth the principal thereof, theinvestments and payments made, the income earned and disbursed; provided,however, that the Commission may require the cemetery, trustee, or other entityto make such additional financial reports as it may deem advisable.
(c) Whenever a contractfor the sale of personal property and/or services allocates payments to applyto one item at a time under a specific schedule, the contract shall beconsidered divisible. Title to each item of personal property or the right toeach item of services shall pass to the purchaser upon full payment for thatitem regardless of the remaining balance on other items under the samecontract.
(d) Any contract forthe sale of personal property and/or services shall state separate costs foreach item of personal property, for each act of installation required by thecontract, and for each other item of services included in the contract.
(e) All contracts forthe sale of personal property and/or services must be printed in type size asrequired by the Truth in Lending Act, 15 U.S.C. § 1601 et seq., and regulationsadopted pursuant to that act.
(f) In the event ofprepayment, interest charged shall be no more than the interest earned on theunpaid balance computed on a percent per month basis for each month or part ofa month up to the date of final payment. Any excess interest which has beenpaid by the purchaser must be refunded to him, his assigns, or hisrepresentative within 30 days after the final payment. No penalty or additionalcharge for prepayment may be required.
(g) In lieu of thedeposits required under subsection (b) of this section, the cemetery company orother entity may post with the Commission a good and sufficient performancebond by surety company licensed to do business in North Carolina and in anamount sufficient to cover all payments made directly or indirectly by or onaccount of purchasers who have not received the purchased property andservices. Money received from the sale or assignment of notes entered into bythe purchasers, or otherwise, shall be treated as payments made by thepurchasers.
(h) The Commissionshall have the power and is required from time to time as it may deem necessaryto examine the business of any cemetery company or other entity writingcontracts for the sale of the property or services as herein contemplated. Thewritten report of such examination shall be filed in the office of theCommission. Any person or entity being examined shall produce the records ofthe company needed for such examination.
(i) Any provision ofany contract for the sale of the personal property or the performance ofservices herein contemplated under which the purchaser or beneficiary waivesany of the provisions of this section shall be void.
(j) Repealed bySession Laws 1991, c. 653, s. 7.
(k) Nothing in thissection shall apply to persons or legal entities holding licenses under Article13D of Chapter 90 of the General Statutes when engaging in activities for whicha license is required under that Article.
(l) If any report isnot received within the time stipulated by the Commission or herein, theCommission may levy and collect a late filing fee of twenty‑five dollars($25.00) per month for each month of delinquency.
(m) Within 30 daysfollowing the execution of a contract for the sale of personal property orperformance of services, a purchaser may cancel his contract by giving writtennotice to the seller. The seller may cancel the contract, upon default bypurchaser, by giving written notice to the purchaser. Within 30 days of noticeof cancellation, the cemetery company or other entity shall refund to purchaserthe principal amount on deposit in the trust account for his benefit on anyundelivered merchandise or services. This amount (no other obligations owed thepurchaser by the seller) shall constitute the purchaser's entire entitlementsunder the contract. The seller may not terminate the contract without complyingwith this subsection. (1975, c. 768, s. 1; 1979, c. 888, s. 7; 1987, c. 488, s. 7; 1991, c.653, s. 7; 1995, c. 509, s. 135.1(j), (k); 2004‑202, s. 9.)
