17-1312.   Same; custody; requirements; limitations.The permanent maintenance fund required to be established by K.S.A.17-1311, and amendments thereto, shall at all times be in the custody of atrust company located within the state of Kansas, astate or national bank located within the state of Kansas, a state orfederally chartered savings and loan association located within the stateof Kansas or a federally chartered savings bank located within the state ofKansas. Each cemetery corporation shall establish a trust for moneys deposited in thepermanent maintenance fund in accordance with this section. If the marketvalue of the trust is less than $45,000, the trust may have an individualtrustee solong as the trust's assets are maintained in a segregated account. If themarket value of the trust is $45,000 or more, the trustee shall be a trustcompany located within the state of Kansas, a state or national bank locatedwithin the state of Kansas, a state or federally chartered savings and loanassociation located within the state of Kansas or a federally chartered savingsbank located within the state of Kansas.Any such trust company, bank, savings and loanassociation or federally charteredsavings bank with which the custody of a permanent maintenance fund hasbeen entrusted may invest, reinvest,exchange, retain, sell and manage the moneys within such fund. If thetreasurer of any cemetery corporation shall entrust the custody of thepermanent maintenance fund to a savings and loan association orassociations or federally chartered savings bank or banks, the amountof moneys in the custody of any suchassociation or savings bank shall not exceed the amount for which deposits insuch savings and loan association or savings bank are insured by the federalsavings and loaninsurance corporation or other insurer approved by the statecommissioner of insurance. If the treasurer of any cemetery corporationshall entrust the custody of the permanent maintenance fund to a bank orbanks or federally chartered savings bank or banks, the amount of moneyin the custody of any such bank or savings bank shall notexceed the amount for which deposits in such bank or savings bank are insuredby the federal deposit insurance corporation or other insurer approved by thestate bank commissioner. Such trust company, bank, savings and loanassociation, federally chartered savings bank or individualtrustee may serve without bond and may be reasonably compensated forits services out of the income of the fund. It shall be a provision ofany such trust agreement that no moneys, other than income from thetrust, shall be paid over to the cemetery corporation by the trustee,except upon the written permission of the secretary of state.

      History:   L. 1901, ch. 102, § 6; R.S. 1923, 17-1312; L. 1968, ch.330, § 4; L. 1978, ch. 76, § 2; L. 1985, ch. 91, § 2; L. 1989, ch.48, § 78;L. 1994, ch. 229, § 5; July 1.