1. (1) If a member of an association dies; and six (6) months or more after his death the association has in its possession moneys not in excess of two hundred dollars ($200) which would have been distributable and payable to such member except for his death; and no administrator or executor has been appointed for his estate or the estate has been closed; then such an association, without making any publication of notice, may disburse such moneys in the following order:

   1. (a) To the surviving spouse of the deceased member; if none, then
   2. (b) To pay any unsatisfied claims for funeral expenses or reimbursement to any person for the payment thereof, then
   3. (c) To any adult person of the class of those nearest of kin to the deceased, for the benefit of all members of such class.
2. (2) In making such disbursements an association is responsible and liable only for the exercise of good faith and reasonable care and shall have no further responsibility or liability with respect to such moneys or their application or disbursement.

History: Created 1966 Ky. Acts ch. 208, sec. 18.