(a) The net income from the permanent maintenance fund shall only be used for general maintenance, administration, and preservation of the perpetual care cemetery.
(b) A cemetery company shall establish a permanent maintenance fund with or transfer the permanent maintenance fund to:
(1) A state or national bank or federal savings bank with trust powers;
(2) Three (3) trustees, if:
(A) All trustees that make disbursements from the trust fund deposit with the Arkansas Cemetery Board a fidelity bond with corporate surety payable to the trust fund in a penal sum not less than one hundred percent (100%) of the value of the trust fund principal at the beginning of each calendar year; and
(B) No more than one (1) of the trustees has a direct or indirect financial interest in the perpetual care cemetery; or
(3) An individual trustee that on behalf of the cemetery company deposits all permanent maintenance funds directly into a savings account or certificate of deposit in a state or national bank or savings and loan association in this state not less than forty-five (45) days after collection if:
(A) The funds deposited are federally insured;
(B) The funds are restricted to prevent the principal amount of the funds from being withdrawn without the written approval of and on a form approved by the Securities Commissioner; and
(C) Not less than one (1) time per year the net income from the funds may be withdrawn by the individual trustee on behalf of the cemetery company for purposes permitted by this subchapter.
(c) (1) The board may require a trustee who fails to protect the principal of the permanent maintenance fund under ยง 20-17-1013 to pay an additional contribution to the permanent maintenance fund of twenty-five dollars ($25.00) per day for each day that the principal is deficient.
(2) The additional contribution made under subdivision (c)(1) of this section shall not exceed a total of one thousand dollars ($1,000) for a continuous violation.
Section: Previous 20-17-1007 20-17-1008 20-17-1009 20-17-1010 20-17-1011 20-17-1012 20-17-1013 20-17-1014 20-17-1015 20-17-1016 20-17-1017 20-17-1018 20-17-1019 20-17-1020 20-17-1021 NextLast modified: November 15, 2016