§441-40  Application of principal and
income; responsibility of trustee.  (a)  The trustee shall be held
responsible for all payments received for deposit in the perpetual care fund
and pre- need trust.  The trustee shall not withdraw money from the income of
the perpetual care fund unless the cemetery authority submits a certified
statement that withdrawals shall be used for the perpetual care of the
cemetery, including reasonable administrative expenses incurred in connection
with operating a perpetual care cemetery.  Further, the trustee shall not
withdraw money from the principal of the pre-need trust unless the cemetery or
pre-need funeral authority submits a certified statement that the person
entitled to the pre-need services or the assignee has received the services or
that the purchaser has requested a refund of moneys.



(b)  For the purposes of asset management and
safekeeping of the funds, the trustee shall have the authority to inquire into
the propriety of expenditures made by a cemetery and pre-need funeral authority
in connection with the operation of the authority's business.



(c)  The cemetery and pre-need funeral
authority shall provide the trustee with the findings of the annual audit and
actuarial study, which shall serve as guidelines in the management and
safekeeping of the funds. [L 1967, c 199, pt of §1; HRS §441-40; am L 1985, c
101, §20]