367.952 Perpetual care and maintenance -- Creation of funds by cemetery
602 words·~3 min read·
/ky/367-952A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
companies -- Required payments -- Local government exemption --
Termination, distribution, and use of funds in local government trust fund.
(1)Every seller of the items described in subsection (2)(a) of this section shall first
provide for the future care and maintenance of such items, and to accomplish this
purpose shall cause to be established in a financial institution authorized by law to
administer trust funds, or in any other financially sound entity with the prior written
approval of the Attorney General, an irrevocable trust fund to be known as a
perpetual care and maintenance fund. The income of such funds shall be used solely
for the general care, maintenance, and embellishment of the cemetery, except as
otherwise provided herein.
(a)Every seller of the items described in this paragraph shall place the following
amounts into the perpetual care and maintenance fund of the cemetery in
which the item is located within thirty
(30)days after each calendar quarter of
operations for each payment of each sale which occurs or contract of sale
entered into after July 13, 1984:
1. Twenty percent (20%) of the gross selling price of each grave space,
with a minimum of twenty dollars ($20) per grave space;
2. Underground crypt, five percent (5%) of the gross selling price with a
minimum of twenty-five dollars ($25) per crypt;
3. Mausoleum crypt, five percent (5%) of the gross selling price with a
minimum of fifty dollars ($50) per mausoleum crypt; and
4. Columbarium niche, ten percent (10%) of the gross selling price with a
minimum of fifteen dollars ($15) per niche.
(b)For the purposes of this section, "gross selling price" shall not include interest,
carrying charges or finance charges.
(c)Every cemetery company hereinafter established shall create and maintain a
perpetual care and maintenance fund, depositing therein an initial deposit as
listed below, and shall submit proof thereof to the Attorney General prior to
the offering for sale of any burial rights. Any payment required under
paragraph
(a)of this subsection shall be credited against the initial deposit
until the required sum has been reached:
1. In counties of fewer than 50,000 persons, $20,000;
2. In counties of 50,000 to 99,999 persons, $30,000;
3. In counties of 100,000 or more persons, $50,000.
(3)In the event that a purchaser is in default of a contract purchasing any of the items
described in subsection (2)(a) of this section, the financial institution shall release to
the depositor the funds, plus interest, deposited on behalf of the defaulted contract
upon receiving from the depositor a sworn affidavit stating that the purchaser is in
default of the contract, the date of the default, an explanation of the default and that
the depositor mailed a copy of the affidavit to the purchaser's last known address at
least thirty
(30)days prior to said request for release.
(4)This section does not apply to any cemetery that is owned and operated by a local
government. For the purposes of this section, "local government" means cities,
counties, urban-county governments, charter county governments, consolidated
local governments, and unified local governments.
(5)Any local government that has established a trust fund pursuant to subsection
(1)of
this section may petition the Circuit Court pursuant to KRS 386B.2-010 and
386B.2-030 for termination of the trust and distribution of the funds to the local
government for use solely for the general care, maintenance, and embellishment of
the cemetery.
(6)Any funds distributed to the local government pursuant to subsection
(5)of this
section shall be held separately from funds subject to the local government's general
power of appropriation.