Ausnnr 11. -x%?&xs February 11, 1964
Honorable H. I,. Bengtson DefiUtyBanking Commissioner Depzirttient of Banking John Hi Reagan State Office Bldg. Austin, Texas Opinion No. C-215 Re: Reconsideration of c-187, concernitig tihether~‘& cemet~ry’~a;ti~dclatlon maymake prepayments Into lta perDear Mr. Bengtson: petual care truet fund.

Your request fdr an opinion aeka the following queetions :

“1. 1

Maythe stockholders df a cemetetip’aadoci&tIon .ptiepay‘funds into Star Perpetual F&i+&

Tz+uet.‘Fufid, either in advatice~‘of bales’dr dtiring the life of a tini&-pa#nent ‘oontraot rather than at the time final payment Is made? “2.’ If your answer to the foregoing Qi6ation is ‘Yea’;: then Where‘&oh a’ atirplua ~to

”ti PerpetuaI C&tieFundexieta f%m’auch payments, maycredit be taken againtit’sudh.iiurplue frdm~the aalee of ptiopert‘ jl antStled#,to perpetual oar8 until the surplus haa been depleted? I‘3. Are aontributione’~ofi donations received from the etdokholdere oi a oemetery dad&iation over and above legal requirementa to 

### beooneidered in the same light aa oontrlbutione or donationa from third F;t$e;,,tmder the provieiona of 912a-18,

. *

. In response to these 8 ueations. it was held in Attorney General’s Opinion C-l 7 that prepayments into the perpetual care trust fund provided by the provielone of
-1032-Hon. Ii. L. Bengtaon, page 2 (C-215)

Article 912a-15, Vernon’s Civil Statutes, could not be made. Onreconsideration, wehave concluded that this holding is erroneous.

Thepertinent portions of Article 912a-15, Vernon’s Civil Statutes, prior to Senate Bill 121, are as Sol~lows:

“Every cemetery association

. . :whloh has established and Ta now~malntalnlng, operating and/or conducting a perpetual care cemetery, and every atisoclation which shall hereafter establish, maintain, operate and/or conduct,~ a perpetual care cemetery wlthln this State pursuant to this Act, shall establish

. . . an endowment fund

. . . . The principal of auch’fund So? perpetual care shall never be voluntarily reduoed, but shall maintain ci;emaiJ InvlolabIe and shall forever be malnained separate and dlatlnot by the trustee or trustees from all other funds. Andthe net Income arising therefrom shail’b;! used solely for the general care andmalntenande of the property entitled to perpetualjoare In the oelileterj for whlch’the fund 1s established, but shall never be uaed for the lmproveietk’or embellleliment af ’uneold property to be offered for sale.

. , .

II

. . . “A oemetery ,.aaeooiatlon whioh had establlshed a perpetual oare fund mayalso take, reoeive, and hold therefor &ndas‘a ‘part thereof OFbaaan Incident thereto

’any property, real; pereonal or mixed; bequeathed; devised, grAnted, given or otherwise contributed to it therkfor.

“The perpetual oare fund authorized by this Section arWal1 sumspaid ‘therein or contributed thereto are, and ekch’thereof la hereby, expressly perniltted and shall be and be deemed to‘bh for charitable and eleemosynary purposes. .. . .

“Bach perpetual oare oemetery shall deposit in its perpetual care fund an amount e uivalent to

. . . a minimumof twenty cents (20$) per square Soot of ground area sold or disposed of as perpetual care property

. . . Aminimum of fifteen dollars ($15.00) per each crypt
-1033-., .

Hon. H. L. Bengtaon, page 

### 3 (C-215)

Interment right sold or disposed of as perpetual care propert five dollars ($5.00 7 and a mlnlmumof per'each niche Interment right 'sold or'diapoaed of as perpetual care pronerty

. '.

. Such minimumrequlremehta shall apply to ail property IIIwhldh the extiIuslve right of 'sepulture has been sold or paid for, whether used for lnteiment. purposes or not. "The deposit oSsuch funds in the perpetual care fund shall be madewithin thirty (30) days after the receipt ofthe final purdhaae price .of each lot; grave, crypt, or nidhe a6ld as property entitled to perpetual care. . . .' Under the'provlalona of 'Artidle 912a-15, the perpetual care "for trust fund provided for therein tionatltutea a trustfund the benefit and protectionof the pub116 by preserving and keeping cemeteries from be0omSngplaces of disorder, reproach, and desolation In the oommunitles in 'which they are SitUatedc?.; .Artia‘Le 912a-l5re'quire,s certtilntml.nlmiiumdep;o$.lta? to.be made.cJinto.the' perpetual caretrust Sun&; mm@.a$ fr%l>ows~: The& provislohs

"Each ,perpetual care cemetery shall depbslt In ~lta perpetual care truat.Sund an amount equivalent ~to'sudh amount aa mayhave been"atlpulated in any oontraot under which pex+tual oare.progerty was sold prior ,to March 15, 1934, plus a minimumof twenty cents (208) per square foot of ground area sold 

### ordisposed of as perpetual oare property after Maroh 15, 1934, until auah fund reaohea a minimumofOne HundredThousand Dollars ($lCiO,~OQO~OO), after~whloh .eabh such oembt@r$ ahall deposit an amount~equivalent to a minimumof ten cents (104) per square Soot of ground area sold or diapoaed of aa perpetual care property after Maroh 

### 15,1934, until September 

### 3, 1945. Eaoh auoh cemetery shall deposit In Its perpetual care trust 'fund an amount e ulvalent~to a minimumof twenty cents (20B ) per square foot of ground area aold or disposed of as perpetual oare property after September 

### 3, 1945, until July 1, 1963. Amlnlmumof Fifteen Dollars ($15.00) per each orypt interment right for mausoleum

-1034-Hon. H. L:Bengtaon,, page 4 (C-215)

interment sold br disposed of as'perpetual care property atida mlniniumsdFive Dollars ($5.00) per each niche internient right for columbarlum lnterment'sold,or diePosed of as etipetual care property between March 15, ,193&and July 1, 1963, ah&l1 alao'be placid in such perpetual care trust fund. Fromand after July 1, 1963, each Budhceinetery'ahaS1 deposit **In Its**  gerpetual care trust fund ati amount equlvtilent to's minimumof Tlfty cents (504) per square foot of &o+d:ai%& sold or dbapoaed~of as perpetual care property afte? said date. Aminimumdf Forty Dollars ($40.00) per each crypt interment right for mausoleum interment sold or disposed of as perpetual care groperty, except that on crypts ticceaalble only through another crypt the minimumrequirement ahall'be !PwentyDollars ($20.00) per each'auoh crypt, and a minimumoS'Ten Dollars ($10.00) -per Cach niche IntWment~right for colu&artv Interment aold or disposed of 'aubsequent to Jul$,l, 1963, shall al&o be'plaodd in such ,perpetual care trmat fund. such niltilmumrequirements shall Bp$ly to all prop'erty In which the exolualve right of aepulture has been sold and paid for, whether used for interment purpoeea or'not. "After July 1, 1963, each agreement for the sale of burial apace in a perpetual aare cemetery shall eet out separately the-part of the'aggregate amount agreed to be,paid by the~purohaaer which la to be deposited In the perpitual ~oaretrust fund. If the aggregate amount agreed to be paid bJrthe purohaaer ie payable In lnatallmenta, a&l amounta paid thereon ah811 be applied, first* to the part thereof not required to be deposited in the perpetual care trust fund, to t#heextent thereof, and the remainder ah&U, whenreceived by the Belier, be deposited in the perpetiual oare trust $und+ Anyfunds required to be 'deposited In Its penpetual care trust Sund,by a aeller of bull181 apace shall be so deposited not later than ten (10) days after the end of the 'calendar month during which they are received.

. . ." It will be noted by the foregoing provlalona that each perpetual care cemetery is required to makecertain minimum

**-IO35-**Hon. H. L. Benitson', page 5 (C- 

### 215)

deposits-into the trust fund and to maintain a certain mlnlmum amount at all tlniea in the perpetual care trust fund. mere IS no ptiovlslon tihlch prohibits a cemetery aasoclatlon from depositing or malntalnlng'ln the trust Sund'amounts In bxciss of th&~

minimuin-ti@Quir@d; Furthermori, there iti no provlaioti ivhlch either &preiasly or iriiglledly prohibits requlred deposits from being madein advance.

The construction :placed on'tlie provleldna of Article 9128-15 by Attorney Oeneral'a Oplnlon C-187 In'CIfSeot prohlblte the demetery asaoclatlon S&m nialntalnlng a'ptirfietual trust -fund in excess 6S the minimum required to be mtilntalned by the,maklng of ,prepayment&. It %aour opinion that'thls conattitition doea violence to the purpose of the trust and such construction is not atithorlzed.

In Woodv. State, 133 Tex. 110, 126 S.W.2d 4 (1939), the Supreme Court atated,the rule of'atatutory~oonatruotlon appllcable to gour questions as follows:

"It la'the 'aettiCd law~that statuteti' should be'contittied tieati td carry out'the' L~glslatlve intent, andwhen aubh intent .la. ,oxic@aaoertained, It ahould'be glvefi effedt', &en thoUgK'th& literal meaning of thb.tidedti used thereIn ta tiot~SoSl&@di "Also,: statutes ah&Id nevdr be 'given'a'conetruction that' '* leads to tintiert&nty, ltijutitioe, or oonftialbti, lS~lt,,la ,poaalble to construe them otherwise.

. . . In view of the foregoing, you are advised that the stookholders of a oemtitery association mayprepay funds into its "' perpetual care trust fund *ither ln'advance of sale8 or during the life of the time-payment contract.

In answer to yoursecond question, you are advlaed that where a surplus exists in a perpetual bare fund from prepayments, credit maybe taken againat suah aurplua, providing the minimumrequired is maintained at all times. In detemihlng whether a aurplua exists from prepaymenta, no part of the trust fund reaulting'from donations to the trust fund maybe o'onaldered. Attorney General's Opinion 

### c-187is modified to oonform with, the holding herein. SUMMARY

A~oemet~ry"aasociatlon maymakeprdpayment of Sunda Into ita perpetual care trust
-103.6-. . -

eon. H. L. Bengtaon, page 6 (c- 215)

JR:ms fund, either in advance df sale8 or'during

the life df a titie-ptiyinent contract.. Iri determlning whether a surplus exlats from prepa$ment&, no p&tit of the trust fund tieaultlng from dotiatlons to the t-at fund maybe considered. Yours very truly, WAQCiONER

CARR Attorney General

‘tie?’Aeeletant
APPROVED: OPINIONcoMMITTlE$ W;V; Geppert, Chairman J. C. Davle' Linward Shlvera EdwardM@Y'ett APPROVEDFORTHEATTORNEYGENERAL By: .Stanton Stone

-1037-