Prepaid contracts: Termination by buyer.
1. Except as otherwise provided in subsection 2, if the buyer moves to another geographic area beyond the normal facilities of the seller and performers under the prepaid contract, the contract automatically terminates upon the buyer’s written notice to the seller and trustee of his move and of his desire to terminate the contract. The trustee, as soon as reasonably possible after receipt of the notice, shall refund to the buyer all money in the trust fund, including earned interest, held for the buyer’s account.
2. If the contract continues in force and the buyer is not in default thereunder, upon the demise of the contract beneficiary, the contract automatically terminates. Upon termination, the seller shall refund to the buyer or to his representative or estate, or transfer to a substituted performer, if any, all money paid on the contract.
Last modified: February 27, 2006