KRS § 367.958 — KY Code / Title XXIX / Chapter 367 / Section 367.958
367.958 Sale of mausoleum or underground crypts or columbaria
Status: in_force

367.958 Sale of mausoleum or underground crypts or columbaria.

(1) Every person before engaging in a sale, contract for sale, reservation for sale or

agreement for sale of a mausoleum crypt within a mausoleum, underground crypt

within a crypt section, or columbarium niche within a mausoleum prior to the

completion of the construction thereof, shall give notice in writing to the Attorney

General of the commencement of such sale at least thirty (30) days prior thereto and

register with the Attorney General. Such registration shall be on forms provided by

the Attorney General.

(2) Every person engaged in the sale of a mausoleum crypt, underground crypt or

columbarium niche shall commence construction thereof within twenty-four (24)

months of the date of such sale and shall complete such construction within sixty

(60) months of the date of such sale. A delay caused by strike, national emergency,

shortage of materials, civil disorder, natural disaster or any like occurrence beyond

the control of such person shall extend the time of such commencement and

completion by the length of such delay. This subsection shall not apply to the sale

of mausoleum crypts, underground crypts or columbarium niches if there has been

any sale in the same project prior to July 13, 1984. Prior projects shall have

commenced construction thereof within thirty-six (36) months of the date of such

sale and shall complete construction within seventy-two (72) months of the date of

such sale.

(3) Every person who plans to offer for sale space in a section of a mausoleum or bank

of underground crypts prior to its construction shall establish a preconstruction trust

account. The trust account shall be administered and operated in the same manner

as the merchandise trust account provided for in this chapter and shall be exclusive

of the merchandise trust account or such other trust accounts or funds that may be

required by law.

(4) Every person shall place thirty-six percent (36%), not including interest or finance

charges, of all payments of money made to any person pursuant to any agreement,

contract or any series or combination of agreements or contracts which are for the

purchase of sections in a mausoleum, columbarium, or any kind of underground

crypt which at the time of the payment of money have not been completely and

totally constructed, in a trust fund account in a financial institution within thirty

(30) days after each calendar quarter of operations. Excepted therefrom, however,

are persons who have constructed in the past their own mausoleum using primarily

equipment owned by the self-constructing person and their own personnel with a

minimum of subcontracting, and in that event there shall be deposited a minimum

of twenty percent (20%) of all payments of money, subject, however, to the actual

cost. If, from project to project, their actual cost is in excess of twenty percent

(20%), the full cost percentage shall be deposited from project to project, not to

exceed thirty-six percent (36%). At the time of notification to the Attorney

General's office the self-constructing mausoleum person shall also notify the

Attorney General that he intends to self-construct and the percentage of

contribution of trust that is required.

(5) All trust funds mentioned in this section shall be deposited in the name of the

person depositing said funds, with the financial institution as trustee, and shall be

held together with the interest, dividends, or accretions thereon, in trust, subject to

the provisions of KRS 367.932 to 367.974 and 367.991. The person at the time of

making deposit or investment shall furnish to the financial institution the name of

each payor, and the amount of payment on each account for which the deposit or

investment is being made.

(6) Deposits to such funds and the amounts deposited may be commingled, but the

accounting records shall establish a separate account for each prepaid contract and

shall show amounts deposited and the income and loss occurring thereon with

respect to each contract.

(7) All payments made to the preconstruction trust fund account shall remain in the

trust fund with the financial institution until the financial institution receives a

certified statement from the depositor stating that the particular project for which

the preconstruction trust fund has been established is totally completed. During the

construction stage, trust funds may be withdrawn by presenting the trustee with

appropriate evidence of expenditure for construction cost. The trustee shall

thereupon disburse moneys from the trust fund to pay for the expenses of

construction presented for payment.

(8) A trustee may rely upon all certifications and affidavits made pursuant to or

required by the provisions of KRS 367.932 to 367.974 and 367.991, and shall not

be liable to any person for such reliance.

(9) If a mausoleum section or bank of underground crypts is not completed within the

time limits set out in KRS 367.932 to 367.974 and 367.991, the financial institution

acting as trustee, if any, may contract for and cause said project to be completed

and paid therefor from the trust account funds deposited to the project's account,

paying any balance, less cost and expenses, to the depositor. In the event there is no

corporate trustee, or the trustee chooses not to serve in the capacity to complete

construction, the Attorney General shall appoint a committee to serve as trustees to

trust account funds deposited to the project's account, paying any balance, less cost

and expenses, to the cemetery company.

(10) If it is determined by the trustee after the expiration of the time of construction set

out above that there is not enough money in the trust fund account to complete the

project, the trustee shall make a refund of all moneys held to all purchasers, or his

heirs or assigns, in the amount of the deposit to the credit of their particular contract

and all income those funds have earned. The purchasers shall be entitled to receive

any remainder of the purchase price paid from the depositor. However, nothing

herein contained shall relieve any person from any liability for nonperformance of

the contract terms.

(11) If temporary entombment or inurnment is not used, upon written notification to the

seller, the personal representative or any purchaser of such space who dies before

completion of construction shall be entitled to a refund of all moneys paid into the

preconstruction trust fund for such space, including any income earned thereon, and

from the seller, the remainder of the purchase price paid.

(12) In lieu of the trust fund deposits required herein, the person may post with the

Attorney General's Office of Consumer Protection, a good and sufficient bond by a

surety company licensed to do business in Kentucky and in an amount sufficient to

cover all payments made by or on account of purchasers who have not received the

purchased property and services. This bond shall be held for the benefit of any

purchaser, or his or her heir or assign or duly authorized representative, who suffers

a loss of money paid for a preconstructed mausoleum crypt or niche or underground

crypt after July 13, 1984, due to the insolvency of the registrant, or failure to

construct within the time limits set out herein. If a bond is posted, the Attorney

General's office shall receive sixty (60) days' written notice in the event of

cancellation. On or before the cancellation date, the person shall comply with the

trust fund requirements herein or post another good and sufficient bond.

(13) Any person selling preconstruction mausoleum, columbarium, or underground crypt

contracts shall pay to the Attorney General five dollars ($5) for each sale of said

contract and all of which fees shall be remitted by the person collecting them to the

Attorney General at least once each month, and such funds shall be used by the

Attorney General in administering this chapter.