16-322. Same; trust fund; requirements; disbursements.
16-322
16-322. Same; trust fund; requirements; disbursements.
(a) The cemetery corporation shall establish and maintain a cemetery
merchandise trust fund with a bank, trust company or savings and loan
association
having trust powers. A copy of each contract or a written notice containing
all relevant information regarding such prepaid merchandise contract for
which deposits are made shall be furnished financial institutions. The
institutions
shall serve as trustees for the purposes of this act. Deposits to such
fund shall be carried in the name of the cemetery corporation and the amounts
deposited therein may be commingled, but the accounting records
shall establish a separate account for each prepaid merchandise contract
and shall show the amounts deposited, and the income or loss accruing thereon,
with respect to each prepaid merchandise contract. The trustee shall reimburse
the cemetery corporation for all income taxes and costs incurred with respect
to the operation of such fund, and the trustee shall be reimbursed from
the earnings of such fund for all reasonable costs incurred in serving as
trustee, including a reasonable fee for its services. The taxes and costs
shall be paid from earnings of the fund prior to the allocation of earnings
to the individual accounts.
(b) No part of the moneys required by K.S.A. 16-321, and amendments
thereto, to be held under a prepaid merchandise contract shall ever be used
for any purpose other than investment as authorized by K.S.A. 16-324, and
amendments thereto, until delivery of the merchandise is made. With
respect to any cemetery merchandise which
is not affixed to real property, delivery shall occur when physical possession
is tendered to the purchaser, and a bill of sale or similar instrument of
title is delivered to the purchaser. With respect to cemetery merchandise
which is affixed to realty, delivery
shall occur when construction or permanent installation of the merchandise
has been completed. Upon delivery of the cemetery merchandise, the cemetery
corporation shall present the trustee with a verified statement that delivery
has been made. Upon such presentation the trustee shall pay to the cemetery
corporation the amount of any funds held in trust with respect to the cemetery
merchandise delivered and no
further deposits shall be made with respect to such cemetery merchandise.
History: L. 1982, ch. 96, § 3; L. 1989, ch. 48, § 75;
L. 1994, ch. 34, § 1; July 1.