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20-17-1014. Permanent maintenance fund trustees.
Arkansas Code — all titles (historical 2020) · legal_authorities
20-17-1014. Permanent maintenance fund trustees.
(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 State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services 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(B) The funds are restricted to prevent the principal amount of the funds from being withdrawn without the written approval of and on a form approved by the Insurance Commissioner; and
(C) Not less than one (1) time per year the net income from the funds may be withdrawn by the individual trustee on behalf of the cemetery company for purposes permitted by this subchapter.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 § 20-17-1013 to pay an additional c
Source: Arkansas Code — historical release 78 (November 6, 2020) · 20-17-1014
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:20-17-1014
Source file: gov.ar.code.title.20.odt
Pages: Not recorded – Not recorded
Passage SHA-256: e9710391a464c9683bd8115ce1273b5f79397466d88c1c7e846d84f6d340361e
Source location: content.xml paragraph 16226
Stored source content
20-17-1014. Permanent maintenance fund trustees.
(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 State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services 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 Insurance 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 § 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.
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Arkansas Code — all titles (historical 2020) · legal_authorities
20-17-1013. Permanent maintenance fund generally.
(a)(1)(A) The permanent maintenance fund is a trust fund for the purpose of administration, care, and maintenance of the cemetery, including lots, graves, spaces, crypts, niches, and burial rights.
(B) The principal of the permanent maintenance fund shall be preserved.
(2)(A) The net income generated from the investment of the principal of the permanent maintenance fund shall be paid to and expended by the owners, managers, officers, or directors of the cemetery company exclusively for the care and maintenance of the cemetery, including the payment of taxes and administrative expenses of maintaining the fund.
(B) A cemetery company may add unused net income to the principal of the permanent maintenance fund.
(3) Except as provided in subdivision (a)(4) of this section, the principal of the permanent maintenance fund shall be invested and remain invested in securities and funds permitted by the laws of Arkansas for the investment of policy reserves of life insurance companies under the Arkansas Insurance Code, § 23-60-101 et seq., and in the common trust funds of state or national banks.
(4)(A) A permanent maintenance fund having assets of more than two hundred fifty thousand dollars ($250,000) may invest not more than fifty percent (50%) of its assets in nonassessable common stocks listed on a national securities exchange, preferred stocks meeting the requirements of § 23-63-815, and investment trust securities meeting the requirements of § 23-63-820.
(B) The diversification restrictions of § 23-63-805 do not apply to investments in investment trust securities.
(5) In investing these funds, the trustee shall exercise the judgment and care under the circumstances then prevailing which persons of prudence,
Source: Arkansas Code — historical release 78 (November 6, 2020) · 20-17-1013
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 20-17-1013. This identifies an authority to review, not proof of applicability.