IC 30-2-9
Chapter 9. Prepaid Funeral Plans and Funeral Trust Funds
Established Before 1982
IC 30-2-9-1 Agreement or contract; personal property, merchandise, or
services; General Cemetery law
Sec. 1. (a) Any payment of money made to any person, firm,
partnership, association, limited liability company, or corporation,
other than a bank or trust company, upon any agreement or contract,
or any series or combination of agreements or contracts, which has
for a purpose the furnishing or performance of funeral services, or
the furnishing or delivery of any personal property, merchandise, or
services of any nature in connection with the final disposition of a
dead human body, for future use at a time determinable by the death
of the person or persons whose body or bodies are to be so disposed
of, shall be held to be trust funds, and the person, firm, partnership,
association, or corporation receiving said payments is hereby
declared to be a trustee thereof. This subsection applies only to such
a contract or agreement executed before July 1, 1978.
(b) After June 30, 1978, it is unlawful to enter into any agreement
or contract for a purpose described in subsection (a) unless the
agreement or contract requires that all payments be made by the
settlor to an account in a:
(1) bank;
(2) trust company;
(3) savings association; or
(4) credit union;
whose principal office is in Indiana.
(c) Nothing contained in this chapter shall be deemed or construed
to apply to those persons, firms, partnerships, associations, limited
liability companies, or corporations covered by the "Indiana General
Cemetery Law", IC 23-14-1. (Formerly: Acts 1963, c.303, s.1.) As amended by Acts 1978,
P.L.133, SEC.1; Acts 1979, P.L.272, SEC.1; P.L.8-1993, SEC.465;
P.L.79-1998, SEC.92.
IC 30-2-9-1.5 Funeral trusts
Sec. 1.5. (a) After June 30, 1978, but before July 1, 1982, an
individual may establish one (1) funeral trust under this section, in
lieu of any other arrangement for advance payment of funeral and
burial expense, such as a joint account, that may be lawful under
section 1(b) of this chapter.
(b) A funeral trust established under this section must:
(1) be irrevocable;
(2) have only one (1) settlor;
(3) name a financial institution qualified under section 1(b) of
this chapter in which all funds are to be deposited;
(4) name an embalmer, a funeral director, or funeral home,
licensed under IC 25-15, as sole beneficiary;
(5) be accompanied by a contract between the settlor and
beneficiary as provided in subsection (c); and
(6) be either a time deposit, or account, or certificate of deposit
in a financial institution, in the names of the settlor and the
beneficiary payable on death to the survivor, or name the
designated financial institution as sole trustee.
(c) A funeral trust contract must specify in detail the funeral and
burial services to be provided by the beneficiary, and must specify
the place of the funeral and the place of burial or other disposition.
The contract must contain an acknowledgement by the settlor that he
understands the irrevocable nature of the trust. In addition, the
contract may provide for reasonable adjustment of the services to be
provided if:
(1) the settlor has not contributed the full amount specified in
the contract at the time of his death; or
(2) the reasonable expense of transporting the corpse a distance
greater than twenty-five (25) miles to the place of the funeral or
the place of burial is paid by the beneficiary.
The contract may contain other provisions not inconsistent with this
chapter, including a provision for disposition of income on the trust
funds that results in a balance greater than the contribution agreed to
by the settlor.
(d) The settlor may change the beneficiary, but any new
beneficiary must be licensed under IC 25-15 or be a funeral director
or funeral home licensed under the laws of another state. The settlor
may also change the place of the funeral or the place of burial.
(e) Any trust established under section 1(a) of this chapter may be
converted to a funeral trust, provided for under this section, by
agreement of the parties to the original contract, payment of all trust
funds into the funeral trust, and satisfaction of all requirements of
this section including execution of the required contract.
(f) Any trust established under this chapter may be converted to
a funeral trust provided for under IC 30-2-10 by satisfaction of all
requirements of that chapter. As added by Acts 1978, P.L.133, SEC.2. Amended by Acts 1979,
P.L.272, SEC.2; Acts 1982, P.L.179, SEC.1; P.L.246-1985, SEC.20.
IC 30-2-9-2 Deposit of funds; investments
Sec. 2. All trust funds paid under section 1(a) of this chapter shall
be deposited in a bank or trust company whose principal office is in
this state, or invested in a savings and loan, or building and loan
association whose principal office is in this state, in the name of the
trustee, as trustee, within thirty (30) days after receipt thereof, and
shall be held by such trustee in trust, subject to the provisions of this
chapter. (Formerly: Acts 1963, c.303, s.2.) As amended by Acts 1978,
P.L.133, SEC.3. IC 30-2-9-3 Permits; fidelity bonds; accounts, books, and records
Sec. 3. No person, firm, partnership, association, limited liability
company, or corporation may accept or hold trust funds paid under
section 1(a) of this chapter without first securing from the state board
of funeral service a permit to accept and hold the funds. Applications
for the permit must be in writing, signed by the applicant, and duly
verified on forms furnished by the board. Each application must
contain at least the following:
(1) The full name and address (both residence and place of
business) of the applicant, and every member, officer, and
director of the applicant if the applicant is a firm, partnership,
association, limited liability company, or corporation. Any
permit issued in response to the application is valid for two (2)
years, only at the address stated in the application for the
applicant or at the address as may be approved by the board.
(2) A detailed statement of the applicant's assets and liabilities.
(3) A fidelity bond executed by the applicant and a surety
company authorized to do business in this state in the amount
not exceeding ten thousand dollars ($10,000) as the board may
require.
Upon receipt of such application and bond, the board shall issue a
permit unless it determines that the applicant has made false
statements or representations in the application, is insolvent, has
conducted or is about to conduct his business in a fraudulent manner,
or is not duly authorized to transact business in this state. The board
may require an additional bond from time to time in amounts equal
to one tenth (1/10) of the trust funds held by the permittee. The bond
must run to the state of Indiana for the use and benefit of the
beneficiaries of the trust funds. The permittee shall keep accurate
accounts, books, and records in this state of all transactions, copies
of all agreements, dates, and amounts of payments made and
accepted on all agreements, the names and addresses of the
contracting parties, the persons for whose benefit the funds are
accepted, and the names of the depositories of the funds. The
permittee shall make reports to the board annually or at any other
times that the board may require, on forms furnished by the board.
Every application must be accompanied by a fee of ten dollars ($10)
and every report must be accompanied by a fee of two dollars ($2).
The permittee shall make all the books and records pertaining to the
trust funds available to the board for examination. The board, or a
qualified person designated by it may at any time investigate the
books, records, and accounts of the permittee with respect to its trust
funds and for that purpose may require the attendance of and
examine under oath all persons whose testimony he may require. (Formerly: Acts 1963, c.303, s.3.) As amended by Acts 1978,
P.L.133, SEC.4; P.L.246-1985, SEC.21; P.L.8-1993, SEC.466.
IC 30-2-9-4 Deposits or investments; interest or dividends; withdrawal;
forfeiture
Sec. 4. The amount or amounts deposited or invested, with
interest or dividends thereon, if any, shall not be withdrawn until the
death of the person or persons for whose funeral or burial such funds
were paid, unless sooner withdrawn and repaid to the person who
originally paid the money under or in connection with said agreement
or series of agreements or to his or her legal representative: Provided,
That if the agreement or series of agreements provides for forfeiture
and retention of any or all such payments by reason of default in
payment upon and according to the terms thereof, then upon any such
default and forfeiture the trustee may withdraw such deposits or
investments: Provided, further, That nothing herein contained shall
prohibit the change of depository by the trustee and the transfer of
trust funds from one depository to another. This section applies only
to trust funds that include payments under section 1(a) of this
chapter. (Formerly: Acts 1963, c.303, s.4.) As amended by Acts 1978,
P.L.133, SEC.5.
IC 30-2-9-5 Compensation and expenses of trustee
Sec. 5. This chapter shall not be construed to prohibit a trustee
under section 1(a) of this chapter from being reimbursed and
receiving from the fund its reasonable expenses in the custody and
administration of the funds and the usual and reasonable
compensation for its services as the trustee. However, the expenses
and compensation shall be fixed by the state board of funeral service
in a reasonable amount based upon the principal fund and the
earnings of the fund deposited or invested under each of the
agreements or series of agreements. A financial institution trustee
under section 1.5 of this chapter may be reimbursed for its
reasonable expenses from the fund, except the amount shall be fixed
by the Indiana department of financial institutions. (Formerly: Acts 1963, c.303, s.5.) As amended by Acts 1978,
P.L.133, SEC.6; P.L.246-1985, SEC.22.
IC 30-2-9-6 Liquidated damages
Sec. 6. It shall be unlawful for any such agreement or agreements
to provide for forfeiture and retention of payments upon any such
agreement or series of agreements as and for liquidated damages for
default therein in excess of 10% of the payments made or $35.00,
whichever sum is the larger. (Formerly: Acts 1963, c.303, s.6.)
IC 30-2-9-7 False reports; illegal use or disbursement of funds
Sec. 7. (a) Except as provided in subsection (b) or (c), a person
who violates this chapter or makes any false and fraudulent report
required under this chapter commits a Class B misdemeanor.
(b) A person who knowingly or intentionally uses or disburses
funds in a funeral trust established under this chapter for purposes
other than the purposes required under this chapter commits a Class
C felony.
(c) Except as authorized in an agreement described in section 4 of
this chapter permitting the early withdrawal of funds, a trustee that
disburses funds in a funeral trust established under this chapter
without verifying:
(1) the death of the individual for whom services are to be
provided under the contract; and
(2) that the beneficiary fully performed all funeral and burial
services provided for in the contract;
through the use of documentation required under rules adopted by
the state board of funeral and cemetery service established by
IC 25-15-9-1 commits a Class A infraction. (Formerly: Acts 1963, c.303, s.7.) As amended by Acts 1978, P.L.2,
SEC.3001; P.L.113-2007, SEC.8; P.L.61-2008, SEC.4.
IC 30-2-9-8 Partial invalidity of law
Sec. 8. If any part or parts of this chapter shall be held
unconstitutional, the remaining provisions shall be given full force
and effect as completely as if the part held unconstitutional had not
been included herein, if such remaining part or parts can then be
administered for the purpose of licensing and regulating payments
for future use in connection with the disposition of a dead human
body, as provided for in this chapter. (Formerly: Acts 1963, c.303, s.8.) As amended by Acts 1982,
P.L.171, SEC.116.
IC 30-2-9
Chapter 9. Prepaid Funeral Plans and Funeral Trust Funds
Established Before 1982
IC 30-2-9-1 Agreement or contract; personal property, merchandise, or
services; General Cemetery law
Sec. 1. (a) Any payment of money made to any person, firm,
partnership, association, limited liability company, or corporation,
other than a bank or trust company, upon any agreement or contract,
or any series or combination of agreements or contracts, which has
for a purpose the furnishing or performance of funeral services, or
the furnishing or delivery of any personal property, merchandise, or
services of any nature in connection with the final disposition of a
dead human body, for future use at a time determinable by the death
of the person or persons whose body or bodies are to be so disposed
of, shall be held to be trust funds, and the person, firm, partnership,
association, or corporation receiving said payments is hereby
declared to be a trustee thereof. This subsection applies only to such
a contract or agreement executed before July 1, 1978.
(b) After June 30, 1978, it is unlawful to enter into any agreement
or contract for a purpose described in subsection (a) unless the
agreement or contract requires that all payments be made by the
settlor to an account in a:
(1) bank;
(2) trust company;
(3) savings association; or
(4) credit union;
whose principal office is in Indiana.
(c) Nothing contained in this chapter shall be deemed or construed
to apply to those persons, firms, partnerships, associations, limited
liability companies, or corporations covered by the "Indiana General
Cemetery Law", IC 23-14-1. (Formerly: Acts 1963, c.303, s.1.) As amended by Acts 1978,
P.L.133, SEC.1; Acts 1979, P.L.272, SEC.1; P.L.8-1993, SEC.465;
P.L.79-1998, SEC.92.
IC 30-2-9-1.5 Funeral trusts
Sec. 1.5. (a) After June 30, 1978, but before July 1, 1982, an
individual may establish one (1) funeral trust under this section, in
lieu of any other arrangement for advance payment of funeral and
burial expense, such as a joint account, that may be lawful under
section 1(b) of this chapter.
(b) A funeral trust established under this section must:
(1) be irrevocable;
(2) have only one (1) settlor;
(3) name a financial institution qualified under section 1(b) of
this chapter in which all funds are to be deposited;
(4) name an embalmer, a funeral director, or funeral home,
licensed under IC 25-15, as sole beneficiary;
(5) be accompanied by a contract between the settlor and
beneficiary as provided in subsection (c); and
(6) be either a time deposit, or account, or certificate of deposit
in a financial institution, in the names of the settlor and the
beneficiary payable on death to the survivor, or name the
designated financial institution as sole trustee.
(c) A funeral trust contract must specify in detail the funeral and
burial services to be provided by the beneficiary, and must specify
the place of the funeral and the place of burial or other disposition.
The contract must contain an acknowledgement by the settlor that he
understands the irrevocable nature of the trust. In addition, the
contract may provide for reasonable adjustment of the services to be
provided if:
(1) the settlor has not contributed the full amount specified in
the contract at the time of his death; or
(2) the reasonable expense of transporting the corpse a distance
greater than twenty-five (25) miles to the place of the funeral or
the place of burial is paid by the beneficiary.
The contract may contain other provisions not inconsistent with this
chapter, including a provision for disposition of income on the trust
funds that results in a balance greater than the contribution agreed to
by the settlor.
(d) The settlor may change the beneficiary, but any new
beneficiary must be licensed under IC 25-15 or be a funeral director
or funeral home licensed under the laws of another state. The settlor
may also change the place of the funeral or the place of burial.
(e) Any trust established under section 1(a) of this chapter may be
converted to a funeral trust, provided for under this section, by
agreement of the parties to the original contract, payment of all trust
funds into the funeral trust, and satisfaction of all requirements of
this section including execution of the required contract.
(f) Any trust established under this chapter may be converted to
a funeral trust provided for under IC 30-2-10 by satisfaction of all
requirements of that chapter. As added by Acts 1978, P.L.133, SEC.2. Amended by Acts 1979,
P.L.272, SEC.2; Acts 1982, P.L.179, SEC.1; P.L.246-1985, SEC.20.
IC 30-2-9-2 Deposit of funds; investments
Sec. 2. All trust funds paid under section 1(a) of this chapter shall
be deposited in a bank or trust company whose principal office is in
this state, or invested in a savings and loan, or building and loan
association whose principal office is in this state, in the name of the
trustee, as trustee, within thirty (30) days after receipt thereof, and
shall be held by such trustee in trust, subject to the provisions of this
chapter. (Formerly: Acts 1963, c.303, s.2.) As amended by Acts 1978,
P.L.133, SEC.3. IC 30-2-9-3 Permits; fidelity bonds; accounts, books, and records
Sec. 3. No person, firm, partnership, association, limited liability
company, or corporation may accept or hold trust funds paid under
section 1(a) of this chapter without first securing from the state board
of funeral service a permit to accept and hold the funds. Applications
for the permit must be in writing, signed by the applicant, and duly
verified on forms furnished by the board. Each application must
contain at least the following:
(1) The full name and address (both residence and place of
business) of the applicant, and every member, officer, and
director of the applicant if the applicant is a firm, partnership,
association, limited liability company, or corporation. Any
permit issued in response to the application is valid for two (2)
years, only at the address stated in the application for the
applicant or at the address as may be approved by the board.
(2) A detailed statement of the applicant's assets and liabilities.
(3) A fidelity bond executed by the applicant and a surety
company authorized to do business in this state in the amount
not exceeding ten thousand dollars ($10,000) as the board may
require.
Upon receipt of such application and bond, the board shall issue a
permit unless it determines that the applicant has made false
statements or representations in the application, is insolvent, has
conducted or is about to conduct his business in a fraudulent manner,
or is not duly authorized to transact business in this state. The board
may require an additional bond from time to time in amounts equal
to one tenth (1/10) of the trust funds held by the permittee. The bond
must run to the state of Indiana for the use and benefit of the
beneficiaries of the trust funds. The permittee shall keep accurate
accounts, books, and records in this state of all transactions, copies
of all agreements, dates, and amounts of payments made and
accepted on all agreements, the names and addresses of the
contracting parties, the persons for whose benefit the funds are
accepted, and the names of the depositories of the funds. The
permittee shall make reports to the board annually or at any other
times that the board may require, on forms furnished by the board.
Every application must be accompanied by a fee of ten dollars ($10)
and every report must be accompanied by a fee of two dollars ($2).
The permittee shall make all the books and records pertaining to the
trust funds available to the board for examination. The board, or a
qualified person designated by it may at any time investigate the
books, records, and accounts of the permittee with respect to its trust
funds and for that purpose may require the attendance of and
examine under oath all persons whose testimony he may require. (Formerly: Acts 1963, c.303, s.3.) As amended by Acts 1978,
P.L.133, SEC.4; P.L.246-1985, SEC.21; P.L.8-1993, SEC.466.
IC 30-2-9-4 Deposits or investments; interest or dividends; withdrawal;
forfeiture
Sec. 4. The amount or amounts deposited or invested, with
interest or dividends thereon, if any, shall not be withdrawn until the
death of the person or persons for whose funeral or burial such funds
were paid, unless sooner withdrawn and repaid to the person who
originally paid the money under or in connection with said agreement
or series of agreements or to his or her legal representative: Provided,
That if the agreement or series of agreements provides for forfeiture
and retention of any or all such payments by reason of default in
payment upon and according to the terms thereof, then upon any such
default and forfeiture the trustee may withdraw such deposits or
investments: Provided, further, That nothing herein contained shall
prohibit the change of depository by the trustee and the transfer of
trust funds from one depository to another. This section applies only
to trust funds that include payments under section 1(a) of this
chapter. (Formerly: Acts 1963, c.303, s.4.) As amended by Acts 1978,
P.L.133, SEC.5.
IC 30-2-9-5 Compensation and expenses of trustee
Sec. 5. This chapter shall not be construed to prohibit a trustee
under section 1(a) of this chapter from being reimbursed and
receiving from the fund its reasonable expenses in the custody and
administration of the funds and the usual and reasonable
compensation for its services as the trustee. However, the expenses
and compensation shall be fixed by the state board of funeral service
in a reasonable amount based upon the principal fund and the
earnings of the fund deposited or invested under each of the
agreements or series of agreements. A financial institution trustee
under section 1.5 of this chapter may be reimbursed for its
reasonable expenses from the fund, except the amount shall be fixed
by the Indiana department of financial institutions. (Formerly: Acts 1963, c.303, s.5.) As amended by Acts 1978,
P.L.133, SEC.6; P.L.246-1985, SEC.22.
IC 30-2-9-6 Liquidated damages
Sec. 6. It shall be unlawful for any such agreement or agreements
to provide for forfeiture and retention of payments upon any such
agreement or series of agreements as and for liquidated damages for
default therein in excess of 10% of the payments made or $35.00,
whichever sum is the larger. (Formerly: Acts 1963, c.303, s.6.)
IC 30-2-9-7 False reports; illegal use or disbursement of funds
Sec. 7. (a) Except as provided in subsection (b) or (c), a person
who violates this chapter or makes any false and fraudulent report
required under this chapter commits a Class B misdemeanor.
(b) A person who knowingly or intentionally uses or disburses
funds in a funeral trust established under this chapter for purposes
other than the purposes required under this chapter commits a Class
C felony.
(c) Except as authorized in an agreement described in section 4 of
this chapter permitting the early withdrawal of funds, a trustee that
disburses funds in a funeral trust established under this chapter
without verifying:
(1) the death of the individual for whom services are to be
provided under the contract; and
(2) that the beneficiary fully performed all funeral and burial
services provided for in the contract;
through the use of documentation required under rules adopted by
the state board of funeral and cemetery service established by
IC 25-15-9-1 commits a Class A infraction. (Formerly: Acts 1963, c.303, s.7.) As amended by Acts 1978, P.L.2,
SEC.3001; P.L.113-2007, SEC.8; P.L.61-2008, SEC.4.
IC 30-2-9-8 Partial invalidity of law
Sec. 8. If any part or parts of this chapter shall be held
unconstitutional, the remaining provisions shall be given full force
and effect as completely as if the part held unconstitutional had not
been included herein, if such remaining part or parts can then be
administered for the purpose of licensing and regulating payments
for future use in connection with the disposition of a dead human
body, as provided for in this chapter. (Formerly: Acts 1963, c.303, s.8.) As amended by Acts 1982,
P.L.171, SEC.116.
IC 30-2-9
Chapter 9. Prepaid Funeral Plans and Funeral Trust Funds
Established Before 1982
IC 30-2-9-1 Agreement or contract; personal property, merchandise, or
services; General Cemetery law
Sec. 1. (a) Any payment of money made to any person, firm,
partnership, association, limited liability company, or corporation,
other than a bank or trust company, upon any agreement or contract,
or any series or combination of agreements or contracts, which has
for a purpose the furnishing or performance of funeral services, or
the furnishing or delivery of any personal property, merchandise, or
services of any nature in connection with the final disposition of a
dead human body, for future use at a time determinable by the death
of the person or persons whose body or bodies are to be so disposed
of, shall be held to be trust funds, and the person, firm, partnership,
association, or corporation receiving said payments is hereby
declared to be a trustee thereof. This subsection applies only to such
a contract or agreement executed before July 1, 1978.
(b) After June 30, 1978, it is unlawful to enter into any agreement
or contract for a purpose described in subsection (a) unless the
agreement or contract requires that all payments be made by the
settlor to an account in a:
(1) bank;
(2) trust company;
(3) savings association; or
(4) credit union;
whose principal office is in Indiana.
(c) Nothing contained in this chapter shall be deemed or construed
to apply to those persons, firms, partnerships, associations, limited
liability companies, or corporations covered by the "Indiana General
Cemetery Law", IC 23-14-1. (Formerly: Acts 1963, c.303, s.1.) As amended by Acts 1978,
P.L.133, SEC.1; Acts 1979, P.L.272, SEC.1; P.L.8-1993, SEC.465;
P.L.79-1998, SEC.92.
IC 30-2-9-1.5 Funeral trusts
Sec. 1.5. (a) After June 30, 1978, but before July 1, 1982, an
individual may establish one (1) funeral trust under this section, in
lieu of any other arrangement for advance payment of funeral and
burial expense, such as a joint account, that may be lawful under
section 1(b) of this chapter.
(b) A funeral trust established under this section must:
(1) be irrevocable;
(2) have only one (1) settlor;
(3) name a financial institution qualified under section 1(b) of
this chapter in which all funds are to be deposited;
(4) name an embalmer, a funeral director, or funeral home,
licensed under IC 25-15, as sole beneficiary;
(5) be accompanied by a contract between the settlor and
beneficiary as provided in subsection (c); and
(6) be either a time deposit, or account, or certificate of deposit
in a financial institution, in the names of the settlor and the
beneficiary payable on death to the survivor, or name the
designated financial institution as sole trustee.
(c) A funeral trust contract must specify in detail the funeral and
burial services to be provided by the beneficiary, and must specify
the place of the funeral and the place of burial or other disposition.
The contract must contain an acknowledgement by the settlor that he
understands the irrevocable nature of the trust. In addition, the
contract may provide for reasonable adjustment of the services to be
provided if:
(1) the settlor has not contributed the full amount specified in
the contract at the time of his death; or
(2) the reasonable expense of transporting the corpse a distance
greater than twenty-five (25) miles to the place of the funeral or
the place of burial is paid by the beneficiary.
The contract may contain other provisions not inconsistent with this
chapter, including a provision for disposition of income on the trust
funds that results in a balance greater than the contribution agreed to
by the settlor.
(d) The settlor may change the beneficiary, but any new
beneficiary must be licensed under IC 25-15 or be a funeral director
or funeral home licensed under the laws of another state. The settlor
may also change the place of the funeral or the place of burial.
(e) Any trust established under section 1(a) of this chapter may be
converted to a funeral trust, provided for under this section, by
agreement of the parties to the original contract, payment of all trust
funds into the funeral trust, and satisfaction of all requirements of
this section including execution of the required contract.
(f) Any trust established under this chapter may be converted to
a funeral trust provided for under IC 30-2-10 by satisfaction of all
requirements of that chapter. As added by Acts 1978, P.L.133, SEC.2. Amended by Acts 1979,
P.L.272, SEC.2; Acts 1982, P.L.179, SEC.1; P.L.246-1985, SEC.20.
IC 30-2-9-2 Deposit of funds; investments
Sec. 2. All trust funds paid under section 1(a) of this chapter shall
be deposited in a bank or trust company whose principal office is in
this state, or invested in a savings and loan, or building and loan
association whose principal office is in this state, in the name of the
trustee, as trustee, within thirty (30) days after receipt thereof, and
shall be held by such trustee in trust, subject to the provisions of this
chapter. (Formerly: Acts 1963, c.303, s.2.) As amended by Acts 1978,
P.L.133, SEC.3. IC 30-2-9-3 Permits; fidelity bonds; accounts, books, and records
Sec. 3. No person, firm, partnership, association, limited liability
company, or corporation may accept or hold trust funds paid under
section 1(a) of this chapter without first securing from the state board
of funeral service a permit to accept and hold the funds. Applications
for the permit must be in writing, signed by the applicant, and duly
verified on forms furnished by the board. Each application must
contain at least the following:
(1) The full name and address (both residence and place of
business) of the applicant, and every member, officer, and
director of the applicant if the applicant is a firm, partnership,
association, limited liability company, or corporation. Any
permit issued in response to the application is valid for two (2)
years, only at the address stated in the application for the
applicant or at the address as may be approved by the board.
(2) A detailed statement of the applicant's assets and liabilities.
(3) A fidelity bond executed by the applicant and a surety
company authorized to do business in this state in the amount
not exceeding ten thousand dollars ($10,000) as the board may
require.
Upon receipt of such application and bond, the board shall issue a
permit unless it determines that the applicant has made false
statements or representations in the application, is insolvent, has
conducted or is about to conduct his business in a fraudulent manner,
or is not duly authorized to transact business in this state. The board
may require an additional bond from time to time in amounts equal
to one tenth (1/10) of the trust funds held by the permittee. The bond
must run to the state of Indiana for the use and benefit of the
beneficiaries of the trust funds. The permittee shall keep accurate
accounts, books, and records in this state of all transactions, copies
of all agreements, dates, and amounts of payments made and
accepted on all agreements, the names and addresses of the
contracting parties, the persons for whose benefit the funds are
accepted, and the names of the depositories of the funds. The
permittee shall make reports to the board annually or at any other
times that the board may require, on forms furnished by the board.
Every application must be accompanied by a fee of ten dollars ($10)
and every report must be accompanied by a fee of two dollars ($2).
The permittee shall make all the books and records pertaining to the
trust funds available to the board for examination. The board, or a
qualified person designated by it may at any time investigate the
books, records, and accounts of the permittee with respect to its trust
funds and for that purpose may require the attendance of and
examine under oath all persons whose testimony he may require. (Formerly: Acts 1963, c.303, s.3.) As amended by Acts 1978,
P.L.133, SEC.4; P.L.246-1985, SEC.21; P.L.8-1993, SEC.466.
IC 30-2-9-4 Deposits or investments; interest or dividends; withdrawal;
forfeiture
Sec. 4. The amount or amounts deposited or invested, with
interest or dividends thereon, if any, shall not be withdrawn until the
death of the person or persons for whose funeral or burial such funds
were paid, unless sooner withdrawn and repaid to the person who
originally paid the money under or in connection with said agreement
or series of agreements or to his or her legal representative: Provided,
That if the agreement or series of agreements provides for forfeiture
and retention of any or all such payments by reason of default in
payment upon and according to the terms thereof, then upon any such
default and forfeiture the trustee may withdraw such deposits or
investments: Provided, further, That nothing herein contained shall
prohibit the change of depository by the trustee and the transfer of
trust funds from one depository to another. This section applies only
to trust funds that include payments under section 1(a) of this
chapter. (Formerly: Acts 1963, c.303, s.4.) As amended by Acts 1978,
P.L.133, SEC.5.
IC 30-2-9-5 Compensation and expenses of trustee
Sec. 5. This chapter shall not be construed to prohibit a trustee
under section 1(a) of this chapter from being reimbursed and
receiving from the fund its reasonable expenses in the custody and
administration of the funds and the usual and reasonable
compensation for its services as the trustee. However, the expenses
and compensation shall be fixed by the state board of funeral service
in a reasonable amount based upon the principal fund and the
earnings of the fund deposited or invested under each of the
agreements or series of agreements. A financial institution trustee
under section 1.5 of this chapter may be reimbursed for its
reasonable expenses from the fund, except the amount shall be fixed
by the Indiana department of financial institutions. (Formerly: Acts 1963, c.303, s.5.) As amended by Acts 1978,
P.L.133, SEC.6; P.L.246-1985, SEC.22.
IC 30-2-9-6 Liquidated damages
Sec. 6. It shall be unlawful for any such agreement or agreements
to provide for forfeiture and retention of payments upon any such
agreement or series of agreements as and for liquidated damages for
default therein in excess of 10% of the payments made or $35.00,
whichever sum is the larger. (Formerly: Acts 1963, c.303, s.6.)
IC 30-2-9-7 False reports; illegal use or disbursement of funds
Sec. 7. (a) Except as provided in subsection (b) or (c), a person
who violates this chapter or makes any false and fraudulent report
required under this chapter commits a Class B misdemeanor.
(b) A person who knowingly or intentionally uses or disburses
funds in a funeral trust established under this chapter for purposes
other than the purposes required under this chapter commits a Class
C felony.
(c) Except as authorized in an agreement described in section 4 of
this chapter permitting the early withdrawal of funds, a trustee that
disburses funds in a funeral trust established under this chapter
without verifying:
(1) the death of the individual for whom services are to be
provided under the contract; and
(2) that the beneficiary fully performed all funeral and burial
services provided for in the contract;
through the use of documentation required under rules adopted by
the state board of funeral and cemetery service established by
IC 25-15-9-1 commits a Class A infraction. (Formerly: Acts 1963, c.303, s.7.) As amended by Acts 1978, P.L.2,
SEC.3001; P.L.113-2007, SEC.8; P.L.61-2008, SEC.4.
IC 30-2-9-8 Partial invalidity of law
Sec. 8. If any part or parts of this chapter shall be held
unconstitutional, the remaining provisions shall be given full force
and effect as completely as if the part held unconstitutional had not
been included herein, if such remaining part or parts can then be
administered for the purpose of licensing and regulating payments
for future use in connection with the disposition of a dead human
body, as provided for in this chapter. (Formerly: Acts 1963, c.303, s.8.) As amended by Acts 1982,
P.L.171, SEC.116.
