20 CAR § 830-109 – Permanent maintenance fund generally

(a)
1. (1) Each permanent maintenance fund shall have a written trust agreement governing the operation of the fund.
2. (2) A copy of the trust agreement shall be filed with the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services.
(b) The board shall be notified prior to any change in the trustee arrangement or in the trustee or trustees by either the cemetery company or the trustee or trustees.
(c) If the board finds that a cemetery company must pay a penalty for failure to make required deposits to the trust fund, the cemetery company must submit proof to the board from the trustee or trustees that the penalty has been deposited into the cemetery company’s permanent maintenance fund.
(d)
1. (1) A cemetery company that elects to establish a permanent maintenance fund overseen by an individual trustee shall have each bank or financial institution that will receive deposits for the permanent maintenance fund, furnish the board with a letter setting forth that:
  1. (A) All funds deposited shall be federally insured;
  2. (B) All funds except the interest earned thereon, will be restricted so that it may not be pledged, withdrawn, or otherwise encumbered without written authorization of the board; and
  3. (C) The name of the trustee who may withdraw the interest.
2. (2) Permanent maintenance funds deposited in any one (1) bank or other financial institution in excess of the maximum Federal Deposit Insurance Corporation insurance shall be deemed to be federally insured if the bank or other financial institution pledges specific security which are direct obligations of the United States government, or agencies whose securities are guaranteed by the United States government, as collateral for the funds in excess of the Federal Deposit Insurance Corporation insurance coverage.