16-322.   Same; trust fund; requirements; disbursements.(a) The cemetery corporation shall establish and maintain a cemeterymerchandise trust fund with a bank, trust company or savings and loanassociationhaving trust powers. A copy of each contract or a written notice containingall relevant information regarding such prepaid merchandise contract forwhich deposits are made shall be furnished financial institutions. Theinstitutionsshall serve as trustees for the purposes of this act. Deposits to suchfund shall be carried in the name of the cemetery corporation and the amountsdeposited therein may be commingled, but the accounting recordsshall establish a separate account for each prepaid merchandise contractand shall show the amounts deposited, and the income or loss accruing thereon,with respect to each prepaid merchandise contract. The trustee shall reimbursethe cemetery corporation for all income taxes and costs incurred with respectto the operation of such fund, and the trustee shall be reimbursed fromthe earnings of such fund for all reasonable costs incurred in serving astrustee, including a reasonable fee for its services. The taxes and costsshall be paid from earnings of the fund prior to the allocation of earningsto the individual accounts.

      (b)   No part of the moneys required by K.S.A. 16-321, and amendmentsthereto, to be held under a prepaid merchandise contract shall ever be usedfor any purpose other than investment as authorized by K.S.A. 16-324, andamendments thereto, until delivery of the merchandise is made. Withrespect to any cemetery merchandise whichis not affixed to real property, delivery shall occur when physical possessionis tendered to the purchaser, and a bill of sale or similar instrument oftitle is delivered to the purchaser. With respect to cemetery merchandisewhich is affixed to realty, deliveryshall occur when construction or permanent installation of the merchandisehas been completed. Upon delivery of the cemetery merchandise, the cemeterycorporation shall present the trustee with a verified statement that deliveryhas been made. Upon such presentation the trustee shall pay to the cemeterycorporation the amount of any funds held in trust with respect to the cemeterymerchandise delivered and nofurther 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.