16-321.   Same; cemetery merchandise trust fund; establishment; deposit ofmoneys.(a) Any cemetery corporation entering into any prepaid merchandise contractshall establish and maintain a cemetery merchandise trust fund under K.S.A.16-322. All prepaid merchandise contracts shall be in writing.

      (b)   A cemetery corporation entering into a prepaid merchandise contractshall be entitled to retain all of the purchase price under the prepaidmerchandise contract until it has received an amount equal to 35% of thepurchase price of the cemetery merchandise sold in a prepaid merchandisecontract.

      (c)   After the cemetery corporation has received the amounts it is entitledto receive under subsection (b) of this section, all payments of the purchaseprice to the cemetery corporation under a prepaid merchandise contract shallbe deposited by the cemetery corporation in a cemetery merchandise trustfund until such time as the requirements of subsection (d) of this sectionhave been satisfied or delivery is made of the cemetery merchandise. Thereafter,all payments of the purchase price in excess of the minimum funding requirementsmay be retained by the cemetery corporation. Deposits shall be made within10 business days after the moneys are received.

      (d)   Annually, as of December 31, each cemetery corporation shall determinethe wholesale cost for all cemetery merchandise covered by a prepaid merchandisecontract for which funds are then held in a cemetery merchandise trust orin an individual merchandise account. If the amounts held with respectto a prepaid merchandise contract exceed the minimum funding requirementthe excess shall be paid by the trustee of the cemetery merchandise trustto the cemetery corporation.In such event,no further deposit shall be required with respect to the prepaid merchandisecontract until such time as the amounts held no longer exceed the minimumfunding requirement. If the minimum funding requirement is not satisfied,no amount shall be paid to or withdrawn by the cemetery corporation andthe cemetery corporation shall continue or shall resume, as the case maybe, making the deposits required by subsection (c) of this section.

      History:   L. 1982, ch. 96, § 2; Jan. 1, 1983.