(a)

1. (1) A cemetery company may elect to discount installment sales contracts at a bank or other financial institution and receive a discounted value immediately in cash.
2. (2) When this election is made, the required percentage of the gross sales price shall be placed in a separate restricted escrow account at the time that the contract is discounted.
3. (3) The escrow agreement shall be filed with the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services.
4. (4) The agreement shall include the terms under which the escrow account is restricted.

5. (5) Further:

   1. (A) The amount placed in escrow shall not be withdrawn until the lot purchaser defaults on or fully satisfies his or her contract obligations;
   2. (B) The escrow account may be used by the bank or other financial institution as part of its required reserve and may be used as recourse if the lot purchaser defaults on the contract;
   3. (C) Upon default, the required percentage of the gross sales price which was placed in the escrow account may be withdrawn and used by the cemetery company; and
   4. (D) Once final payment has been made, the required percentage of the gross sales price which was placed in the escrow account shall be withdrawn and placed into the permanent maintenance fund within five (5) business days.

(b)

1. (1) A cemetery company may also elect to receive installment payments directly.

2. (2) When this election is made, the company shall maintain records as to the full:

   1. (A) Amount of the sale;
   2. (B) Receipts received; and
   3. (C) Balance due.
3. (3) The company shall deposit the required percentage of gross proceeds of sale into the permanent maintenance fund no later than the forty-fifth day after the final payment is made, or the company may deposit the required percentage of each amount received not later than the forty-fifth day after each installment payment by the purchaser.