§ 5-709
532 words·~2 min read·
/md/business-regulation/5-709·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§5–709.
(1)A buyer may cancel a preneed burial contract as to preneed goods not delivered or preneed services not performed if the buyer:
(i)permanently moves more than 75 miles from the cemetery specified in the preneed burial contract; and
(ii)gives to the seller written notice, under oath, of the move and includes the buyer’s new permanent address.
(2)In that event:
(i)the seller shall certify to the trustee:
1. the cancellation of the preneed burial contract;
2. the amount of the remaining specific funds applicable to the preneed burial contract; and
3. the name and address of the buyer; and
(ii)the trustee shall then pay to the buyer the remaining specific funds, accrued interest on the specific funds, and a prorated proportional share of total realized capital gains attributable to the specific funds.
(1)Notwithstanding subsection
(a)of this section, by written notice, a buyer may cancel the purchase of a casket or casket vault under a preneed burial contract at any time prior to the time the buyer needs the casket or casket vault for burial.
(2)In that event:
(i)the seller shall certify to the trustee:
1. the cancellation of the purchase of the casket or casket vault under the preneed burial contract;
2. the amount of the specific funds applicable to the casket or casket vault under the preneed burial contract; and
3. the name and address of the buyer;
(ii)the trustee shall pay to the buyer the specific funds, interest accrued on the specific funds, and a prorated proportional share of total realized capital gains attributable to the specific funds; and
(iii)in addition to the refund paid by the trustee, the seller shall pay to the buyer an amount of money necessary to provide the buyer with a refund of 100% of the money paid for the casket or casket vault under the preneed burial contract.
(c)If a buyer fails to provide written notice of cancellation and defaults on a preneed burial contract and, as a result, the seller terminates the preneed burial contract:
(1)the seller shall certify to the trustee:
(i)the default and termination of the preneed burial contract;
(ii)the amount of the specific funds; and
(iii)the reasonable expenses of the seller; and
(2)the trustee shall then pay:
(i)to the buyer, those specific funds, accrued interest on the specific funds, and a prorated proportional share of total realized capital gains attributable to the specific funds, less the reasonable expenses of the seller; and
(ii)to the seller, the reasonable expenses of the seller.
(d)If specific funds on deposit in a trust account have been dormant for at least 50 years since the date of the last deposit or disbursement and the seller cannot locate the buyer:
(1)the seller shall certify to the trustee:
(i)that the trust account is dormant and the buyer cannot be located; and
(ii)the amount of the specific funds; and
(2)the trustee shall then pay to the seller those specific funds, accrued interest on the specific funds, and a prorated proportional share of total realized capital gains attributable to the specific funds.