Current through Register Vol. XLI, No. 38, September 20, 2024
9.1. Upon
performance of the preneed cemetery company contract, the seller shall certify
to the trustee by affidavit the amount of specific funds in the trust,
identified with the contract performed, which the trustee shall pay to the
seller. The seller may in its records itemize the property, goods or services
and the consideration paid or to be paid therefore, to which the established
deposit requirements apply. In such case the seller may, upon certification to
the trustee of performance or delivery of such property, goods or services and
of the amount of specific trust funds identified in its records with such
items, request disbursement of that portion of the specific funds deposited
pursuant to the contract, which the trustee shall pay to the seller.
9.1.1. When disbursing funds to the seller
for payment on more than one preneed cemetery company contract, the trustee may
combine all such payments into one payment: Provided, That the
trustee maintains appropriate records which specify that portion of the total
payment which is applied to the identified preneed cemetery company contract
and such information is provided to the seller, Provided, However,
That the seller may net out funds received from sales and funds to be paid for
expenses incurred by depositing only the amount in excess of the disbursements
and utilizing the remaining funds for payment of contract expenses:
Provided further, That when utilizing the netting out method for
recording activities, complete documentation of the transactions must be
retained by the seller and provided to the trustee.
9.1.2. When disbursing funds received from
the trustee, the seller may combine into one payment the amounts to be paid to
a single payee: Provided, That the seller maintains appropriate
records which specify that portion of the payment which is applied to the
identified preneed cemetery company contract and such information is provided
to the payee.
9.2. If
the preneed contract provides for two (2) or more persons, the seller may, at
its option, designate in its records the consideration paid for each individual
in the preneed cemetery company contract. In such case, upon performance of
that portion of the contract identified with a particular individual, the
seller may request, by certification in the manner described above, the
disbursement of trust funds applicable to that portion of the contract, which
the trustee shall pay to the seller.
9.3. Any cemetery company that sells space in
an unconstructed mausoleum must commence construction within seven (7) years
from the date of the first sale or when eighty percent (80%) of the spaces in
the original mausoleum plan are sold, whichever occurs first.
9.3.1. Because the preneed cemetery company
contract is purchased from the seller and not from the contractor constructing
the mausoleum, the cemetery company is the person that contracts with and pays
the contractor for construction of the structure.
9.3.2. The cost of constructing a mausoleum
shall be borne by the cemetery company: Provided, That if preneed
cemetery company contracts are used to sell space in the mausoleum, the
proceeds from such sales must be accounted for in the same manner as the
proceeds from the sale of other contracts.
9.3.3. Once mausoleum construction has
commenced, the cemetery company is authorized to draw down progress payments
from the trust funds received from the sale of the mausoleum space funds to pay
for the construction: Provided, That such progress payments are
according to a schedule incorporated into the construction contract:
Provided, However, That the cemetery company must bear any
construction expense in excess of the trust funds available from the sale of
spaces in the mausoleum being constructed.
