reglab/statecodes huggingface dataset:
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.309 - Subcontractor may tender substitute security, when.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2002
436.309. Subcontractor may tender substitute security, when. —
A subcontractor of the contractor may tender to the contractor acceptable substitute security as set forth in section 436.312 with a written request for release of retainage in the amount of the substitute security. The contractor shall tender the subcontractor's substitute security to the owner with a like request, pursuant to the provisions of section 436.306. Provided that the subcontractor is not in default of its agreement with the contractor, the contractor shall pay over to the subcontractor, within five working days after receipt, any accumulated retainage paid by the owner to the contractor on account of substitute security tendered by the subcontractor, except that the contractor shall not be required to pay over retainage in excess of the amount properly attributable to work completed by the subcontractor at the time of payment. Provided that the subcontractor is not in default of its agreement with the contractor, the contractor shall refrain from withholding retainage from payments to the subcontractor to the extent the owner has refrained from withholding retainage from payments to the contractor on account of the subcontractor's substituted security. The subcontractor shall be entitled to receive, upon receipt by the contractor, all income received by the contractor from the owner on account of income-producing securities deposited by the subcontractor as substitute security. Except as otherwise provided in this section, the contractor shall have no obligation to collect or pay to a subcontractor retainage on account of substitute security tendered by the subcontractor.
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(L. 2002 H.B. 1403)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.312 - Substitute security requirements.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2002
436.312. Substitute security requirements. —
1. The following shall constitute acceptable substitute security for purposes of sections 436.306 and 436.309:
(1) Certificates of deposit drawn and issued by a national banking association located in this state or by any banking corporation incorporated pursuant to the laws of this state, and mutually agreeable to the project owner and the contractor or subcontractor, in the amount of the retainage released. If the letter of credit is not renewed at least sixty days before the expiration of the letter of credit, the owner may draw upon the letter of credit regardless of the contractor's or subcontractor's performance for an amount equal to or no greater than the value of the amount of work remaining to be performed by the contractor or subcontractor;
(2) A retainage bond naming the owner as obligee issued by any surety company authorized to issue surety bonds in this state in the amount of the retainage released; or
(3) An irrevocable and unconditional letter of credit in favor of the owner, issued by a national banking association located in this state or by any banking corporation incorporated pursuant to the laws of this state, in the amount of the retainage released.
2. The contractor shall be entitled to receive, in all events, all interest and income earned on any securities deposited by the contractor in substitution for retainage.
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(L. 2002 H.B. 1403)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.315 - Withholding of retainage prohibited, when.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2002
436.315. Withholding of retainage prohibited, when. —
A contractor shall not withhold from any subcontractor any retainage in excess of the retainage withheld from the contractor by the owner for the subcontractor's work, unless the subcontractor's performance is not in accordance with the terms of the subcontract, in which case, subject to the terms of the subcontract, the contractor may retain additional sums to ensure the subcontractor's satisfactory performance of the subcontract.
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(L. 2002 H.B. 1403)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.318 - Release of retainage, payment made.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2002
436.318. Release of retainage, payment made. —
Upon the release of retainage by the owner to the contractor, other than for substituted security pursuant to sections 436.306 and 436.312, the contractor shall pay to each subcontractor the subcontractor's ratable share of the retainage released, provided that all conditions of the subcontract for release of retainage to the subcontractor have been satisfied.
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(L. 2002 H.B. 1403)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.321 - Adjustment in retainage, when.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2002
436.321. Adjustment in retainage, when. —
If it is determined that a subcontractor's performance has been satisfactorily completed and the subcontractor can be released prior to substantial completion of the entire project without risk to the owner involving the subcontractor's work, the contractor shall request such adjustment in retainage, if any, from the owner as necessary to enable the contractor to pay the subcontractor in full, and the owner shall as part of the next contractual payment cycle release the subcontractor's retainage to the contractor, who shall in turn as part of the next contractual payment cycle release such retainage as is due the subcontractor.
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(L. 2002 H.B. 1403)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.324 - Release of retainage, when.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2002
436.324. Release of retainage, when. —
Within thirty days of the project reaching substantial completion, as defined in section 436.327, all retainage or substitute security shall be released by the owner to the contractor less an amount equal to one hundred fifty percent of the costs to complete any remaining items. Upon receipt of such retainage from the owner, the contractor shall within seven days release to each subcontractor that subcontractor's share of the retainage.
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(L. 2002 H.B. 1403)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.327 - Substantial completion defined.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2002
436.327. Substantial completion defined. —
The project shall be deemed to have reached substantial completion upon the occurrence of the earlier of the architect or engineer issuing a certificate of substantial completion in accordance with the terms of the contract documents or the owner accepting the performance of the full contract.
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(L. 2002 H.B. 1403)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.330 - Subcontractor obligations.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2002
436.330. Subcontractor obligations. —
Subcontractors and sub-subcontractors of every tier shall comply with the provisions of sections 436.300 to 436.336 in their relations with their sub-subcontractors and suppliers and shall be bound by the same obligations to their sub-subcontractors and suppliers as contractors are to their subcontractors.
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(L. 2002 H.B. 1403)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.333 - Unenforceability of contracts entered into after August 28, 2002.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2002
436.333. Unenforceability of contracts entered into after August 28, 2002. —
A contract or agreement formed after August 28, 2002, shall be unenforceable to the extent that its provisions are inconsistent with sections 436.300 to 436.336. If retainage is withheld in violation of sections 436.300 to 436.360, a court may, in addition to any other award for damages, award interest at the rate of up to one and one-half percent per month from the date of such wrongful or improper withholding of retainage. In any action brought to enforce sections 436.300 to 436.336, a court may award reasonable attorney's fees to the prevailing party. If the parties elect to resolve the dispute by arbitration pursuant to section 435.350
*
, the arbitrator may award any remedy that a court is authorized to award.
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(L. 2002 H.B. 1403)
*Section number "436.350" appears in original rolls.
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.336 - Applicability.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2002
436.336. Applicability. —
Sections 436.300 to 436.336 shall apply to contracts and agreements entered into after August 28, 2002. Sections 436.300 to 436.336 shall apply to all private construction projects, except single-family residential construction and other residential construction consisting of four or fewer units.
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(L. 2002 H.B. 1403)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.359 - Rejection of settlement offer by association governing board, effect of — meeting requirements.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2005
436.359. Rejection of settlement offer by association governing board, effect of — meeting requirements. —
1. If an association's governing board rejects a written settlement offer from the contractor and has satisfied applicable provisions of section 436.356, and upon written request by the contractor as part of said offer that the association hold a meeting of the members, the provisions of this section shall apply prior to the association filing an action alleging construction defects in the common areas and common elements.
2. The board shall hold a meeting open to each member of the association. The meeting shall be held no less than fifteen days before the association commences an action against the contractor.
3. No less than fifteen days before this meeting is held, a written notice shall be sent to each member of the association specifying all of the following:
(1) That a meeting will take place to discuss construction defects that may lead to the filing of an action, and the date, time, and place of the meeting;
(2) The options that are available to address the construction defects, including the filing of an action and a statement of the various alternatives that are reasonably foreseeable by the association to pay for those options and whether these payments are expected to be made from the use of reserve account funds or the imposition of regular or special assessments, or emergency assessment increases;
(3) The complete text of any written final settlement offer from the contractor and a concise explanation of the contractor's specific reasons for the terms of the offer.
4. The discussions at the meeting and the contents of the notice and the items required to be specified in the notice under subsection 3 of this section are privileged communications and are not admissible in evidence in any action, unless the association consents to their admission.
5. No more than one request to meet and discuss a written settlement offer under this section may be made by the contractor.
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(L. 2005 S.B. 168 § 431.309)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.362 - Mediation requirements.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2005
436.362. Mediation requirements. —
1. At any time, either a claimant or contractor may offer to resolve a claim against a contractor through mediation. Mediation pursuant to this section shall be nonbinding and independently administered. The contractor and claimant shall mutually agree upon a qualified independent and neutral mediator and shall equally share the cost of the mediator. If the parties agree upon a mediator, then the mediation shall take place within a reasonable time period, but in no event later than forty-five days after service of a request for mediation by a claimant upon a contractor or a request by a contractor upon a claimant. A contractor who receives a request for mediation from a claimant shall serve a response in writing within fourteen days and may include within the response the name of a proposed mediator and mediation date. A claimant who receives a request for mediation from a contractor shall serve a response in writing within fourteen days and may include within the response the name of a proposed mediator and mediation date.
2. The contractor or claimant may include in the mediation any person or entity reasonably necessary for resolution of the claim asserted. This subsection shall not be construed to mandate attendance at a mediation by a person or entity other than the contractor or claimant served with a notice of claim.
3. If all the parties to a dispute agree in writing to submit their dispute to any forum for arbitration, conciliation, or mediation, then no person who serves as arbitrator, conciliator or mediator, nor any agent or employee of that person, shall be subpoenaed or otherwise compelled to disclose any matter disclosed in the process of setting up or conducting the arbitration, conciliation, or mediation.
4. Arbitration, conciliation, and mediation proceedings shall be regarded as settlement negotiations and the confidentiality of such proceeding shall be as set forth in supreme court rule 17.
5. Notwithstanding any provisions of law or the agreements of the parties to the contrary, the resolution of the dispute by the parties through mediation or otherwise shall not operate to release any claim of the claimant except the claim described in the notice of defect, and shall not operate to release the claim described in the notice of defect until the agreed-upon remedy has been accomplished.
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(L. 2005 S.B. 168 § 431.312)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.365 - Law not to restrict or inhibit other remedies or ability to contract.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2005
436.365. Law not to restrict or inhibit other remedies or ability to contract. —
1. Nothing in sections 436.350 to 436.365 shall be construed to create a theory or cause of action upon which liability may be based or to limit any causes of action or remedies otherwise available to a homeowner or contractor pursuant to law after giving effect to the provisions of sections 436.350 to 436.365, nor to hinder or otherwise affect the employment, agency, or contractual relationship between homeowners and contractors during the process of construction or remodeling, and does not preclude the termination of those relationships as allowed under current law. Nothing in sections 436.350 to 436.365 shall negate or otherwise restrict a contractor's right to access or inspection provided by law, covenant, easement, or contract.
2. Nothing in sections 436.350 to 436.365 shall be construed to prevent contracts between contractors and homeowners from specifying that disputes shall be resolved by binding arbitration pursuant to chapter 435. In contracts between contractors and homeowners that specify binding arbitration as the means of dispute resolution, sections 436.350 to 436.365 shall not be applicable; provided, in those contracts between contractors and homeowners that specify binding arbitration as the means of dispute resolution, the contractor shall provide notice, pursuant to section 435.460, that disputes may be resolved by binding arbitration and sections 436.350 to 436.365 are not applicable to such transactions.
3. The provisions of sections 436.350 to 436.365 shall not apply to an action brought by an insurer, subrogated to the rights of a claimant, if payment was made by the insurer pursuant to a claim under an insurance policy.
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(L. 2005 S.B. 168 § 431.315)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.400 - Citation of law — applicability.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2009
436.400. Citation of law — applicability. —
The provisions of sections 436.400 to 436.520 shall be referenced as the "Missouri Preneed Funeral Contract Act" and shall apply only to preneed contracts entered into, and accounts created on or after, August 28, 2009, unless otherwise specified.
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(L. 2009 S.B. 1)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.410 - Applicability exceptions.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2009
436.410. Applicability exceptions. —
The provisions of sections 436.400 to 436.520 shall not apply to any contract or other arrangement sold by a cemetery operator for which payments received by or on behalf of the purchaser are required to be placed in an endowed care fund or for which a deposit into a segregated account is required under chapter 214; provided that a cemetery operator shall comply with sections 436.400 to 436.520 if the contract or arrangement sold by the operator includes services that may only be provided by a licensed funeral director or embalmer.
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(L. 2009 S.B. 1)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.412 - Violations, disciplinary actions authorized — governing law for contracts.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2011, 2 histories
436.412. Violations, disciplinary actions authorized — governing law for contracts. —
Each preneed contract made before August 28, 2009, and all payments and disbursements under such contract shall continue to be governed by this chapter as the chapter existed at the time the contract was made. Any licensee or registrant of the board may be disciplined for violation of any provision of sections 436.005 to 436.071
*
within the applicable statute of limitations. Joint accounts in existence as of August 27, 2009, shall continue to be governed by the provisions of section 436.053, as that section existed on August 27, 2009.
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(L. 2009 S.B. 1, A.L. 2011 H.B. 265 merged with S.B. 325)
*Sections 436.005 to 436.071 were repealed by S.B. 1, 2009.
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.415 - Provision of certain services required by provider — seller's duties.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2009
436.415. Provision of certain services required by provider — seller's duties. —
1. Except as otherwise provided in sections 436.400 to 436.520, the provider designated in a preneed contract shall be obligated to provide final disposition, funeral or burial services and facilities, and funeral merchandise as described in the preneed contract.
2. The seller designated in a preneed contract shall be obligated to collect and properly deposit and disburse all payments made by, or on behalf of, a purchaser of a preneed contract and ensure that is statutorily and contractual duties are met, in compliance with sections 436.400 to 436.520.
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(L. 2009 S.B. 1)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.420 - Written contract required, contents — notification to board of provider authorization — seller to provide copy of contract to board upon request.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2009
436.420. Written contract required, contents — notification to board of provider authorization — seller to provide copy of contract to board upon request. —
1. No person shall be designated as a provider in a preneed contract unless the provider has a written contractual agreement with the seller. Any seller who designates a person as a provider in a preneed contract without a contractual relationship with such person is in violation of the provisions of sections 436.400 to 436.520. No contract is required if the seller and provider are the same legal entity.
2. The written agreement required by this section shall include:
(1) Written consent from the provider authorizing the seller to designate or obligate the provider under a preneed contract;
(2) Procedures for tracking preneed contract funds or payments received by the provider and for remitting such funds or payments to the seller, including the time period authorized by the seller for the remittance of funds and payments; and
(3) The signatures of the seller and the provider or their authorized representatives and the date such signatures were
*
obtained.
3. A provider shall notify the board within fifteen days of authorizing or otherwise agreeing to allow a seller to designate himself or herself as the provider under any preneed contract.
4. Upon request of the board, a seller, provider, or preneed agent shall provide a copy of any preneed contract or any contract or agreement with a seller or provider to the board.
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(L. 2009 S.B. 1)
*Words "signature was" appear in original rolls.
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.435 - Compliance of contracts entered into prior to effective date — investment of trust property and assets — loans against assets prohibited.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2009
436.435. Compliance of contracts entered into prior to effective date — investment of trust property and assets — loans against assets prohibited. —
1. To the extent that any provisions in this chapter which come into effect on August 28, 2009, apply to trusts governed under this chapter which are in existence on August 28, 2009, such trusts shall be in compliance with this chapter no later than July 1, 2010.
2. All property held in a preneed trust, including principal and undistributed income, shall be invested and reinvested by the trustee thereof and shall only be invested and reinvested in investments which have reasonable potential for growth or producing income. Funds in, or belonging to, a preneed trust shall not be invested in any term life insurance product.
3. A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution. A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, has a duty to use those special skills or expertise when investing and managing trust assets.
4. A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances, the purpose of the trust is better served without diversification.
5. In investing and managing trust assets, a trustee shall consider the following as are relevant to the trust:
(1) General economic conditions;
(2) The possible effect of inflation or deflation;
(3) The expected tax consequences of investment decisions or strategies;
(4) The role that each investment or course of action plays within the overall trust portfolio;
(5) The expected total return from income and the appreciation of capital;
(6) Needs for liquidity, regularity of income, and preservation or appreciation of capital.
6. No seller, provider, or preneed agent shall procure or accept a loan against any investment or asset of or belonging to a preneed trust. As of August 29, 2009, no preneed seller, provider, or agent shall use any existing preneed contract as collateral or security pledged for a loan or take preneed funds of any existing preneed contract as a loan or for any purpose other than as authorized by this chapter.
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(L. 2009 S.B. 1)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.440 - Provisions applicable to all preneed trusts.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2009
436.440. Provisions applicable to all preneed trusts. —
1. The provisions of this section shall apply to all preneed trusts, including trusts established before August 28, 2009.
2. A preneed trustee may delegate to an agent duties and powers that a prudent trustee of comparable skills would reasonably delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in:
(1) Selecting an agent;
(2) Establishing the scope and terms of the agency, consistent with the purposes and terms of the trust; and
(3) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the agency.
3. In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the agency.
4. By accepting a delegation of powers or duties from the trustee of a preneed trust, an agent submits to the jurisdiction of the courts of this state.
5. Delegation of duties and powers to an agent shall not relieve the trustee of any duty or responsibility imposed on the trustee by sections 436.400 to 436.520 or the trust agreement.
6. For trusts in existence as of August 28, 2009, it shall be permissible for those trusts to continue to utilize the services of an independent financial advisor, if said advisor was in place pursuant to section 436.031 as of August 28, 2009.
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(L. 2009 S.B. 1)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.445 - Trustee not to make decisions, when.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2011, 2 histories
436.445. Trustee not to make decisions, when. —
A trustee of any preneed trust, including trusts established before August 28, 2009, shall not after August 28, 2009, make any decisions to invest any trust fund with:
(1) The spouse of the trustee;
(2) The descendants, siblings, parents, or spouses of a seller or an officer, manager, director or employee of a seller, provider, or preneed agent;
(3) Agents, other than authorized external investment advisors as authorized by section 436.440, or attorneys of a trustee, seller, or provider; or
(4) A corporation or other person or enterprise in which the trustee, seller, or provider owns a controlling interest or has an interest that might affect the trustee's judgment.
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(L. 2009 S.B. 1, A.L. 2011 H.B. 265 merged with S.B. 325)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.450 - Insurance-funded preneed contract requirements.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2011, 2 histories
436.450. Insurance-funded preneed contract requirements. —
1. An insurance-funded preneed contract shall comply with sections 436.400 to 436.520 and the specific requirements of this section.
2. A seller, provider, or any preneed agent shall not receive or collect from the purchaser of an insurance-funded preneed contract any amount in excess of what is required to pay the premiums on the insurance policy as assessed or required by the insurer as premium payments for the insurance policy except for any amount required or authorized by this chapter or by rule. A seller shall not receive or collect any administrative or other fee from the purchaser for or in connection with an insurance-funded preneed contract, other than those fees or amounts assessed by the insurer. As of August 29, 2009, no preneed seller, provider, or agent shall use any existing preneed contract as collateral or security pledged for a loan or take preneed funds of any existing preneed contract as a loan for any purpose other than as authorized by this chapter.
3. Payments collected by or on behalf of a seller for an insurance-funded preneed contract shall be promptly remitted to the insurer or the insurer's designee as required by the insurer; provided that payments shall not be retained or held by the seller or preneed agent for more than thirty days from the date of receipt.
4. It is unlawful for a seller, provider, or preneed agent to procure or accept a loan against any insurance contract used to fund a preneed contract.
5. Laws regulating insurance shall not apply to preneed contracts, but shall apply to any insurance or annuity sold with a preneed contract; provided, however, the provisions of sections 436.400 to 436.520 shall not apply to annuities or insurance polices regulated by chapters 374, 375, and 376 used to fund preneed funeral agreements, contracts, or programs.
6. This section shall apply to all preneed contracts including those entered into before August 28, 2009.
7. For any insurance-funded preneed contract sold after August 28, 2009, the following shall apply:
(1) The purchaser or beneficiary shall be the owner of the insurance policy purchased to fund a preneed contract; and
(2) An insurance-funded preneed contract shall be valid and enforceable only if the seller or provider is named as the beneficiary or assignee of the life insurance policy funding the contract.
8. If the proceeds of the life insurance policy exceed the actual cost of the goods and services provided pursuant to the nonguaranteed preneed contract, any overage shall be paid to the estate of the beneficiary, or, if the beneficiary received public assistance, to the state of Missouri.
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(L. 2009 S.B. 1, A.L. 2011 H.B. 265 merged with S.B. 325)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.456 - Cancellation of contract, when, procedure.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2011, 2 histories
436.456. Cancellation of contract, when, procedure. —
At any time before final disposition, or before the funeral or burial services, facilities, or merchandise described in a preneed contract are furnished, the purchaser may cancel the contract, if designated as revocable, without cause. In order to cancel the contract the purchaser shall:
(1) In the case of a joint account-funded preneed contract, deliver written notice of the cancellation to the seller. Within fifteen days of receipt of notice of the cancellation, the seller shall take whatever steps may be required by the financial institution to obtain the funds from the financial institution. Upon receipt of the funds from the financial institution, the seller shall distribute the principal to the purchaser. Interest shall be distributed as provided in the agreement with the seller and purchaser;
(2) In the case of an insurance-funded preneed contract, deliver written notice of the cancellation to the seller. Within fifteen days of receipt of notice of the cancellation, the seller shall notify the purchaser that the cancellation of the contract shall not cancel any life insurance funding the contract and that insurance cancellation is required to be made in writing to the insurer;
(3) In the case of a trust-funded preneed contract, deliver written notice of the cancellation to the seller and trustee. Within fifteen days of receipt of notice of the cancellation, the trustee shall distribute one hundred percent of the trust property including any percentage of the total payments received on the trust-funded contract that have been withdrawn from the account under subsection 4 of section 436.430 but excluding the income, to the purchaser of the contract;
(4) In the case of a guaranteed installment payment contract where the beneficiary dies before all installments have been paid, the purchaser shall pay the seller the amount remaining due under the contract in order to receive the goods and services set out in the contract, otherwise the purchaser or their estate will receive full credit for all payments the purchaser has made towards the cost of the beneficiary's funeral at the provider current prices.
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(L. 2009 S.B. 1, A.L. 2011 H.B. 265 merged with S.B. 325)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.457 - Seller's right to cancel, when, procedure.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2009
436.457. Seller's right to cancel, when, procedure. —
1. A seller shall have the right to cancel a trust-funded or joint-account funded preneed contract if the purchaser is in default of any installment payment for over sixty days.
2. Prior to cancelling the contract, the seller shall notify the purchaser and provider in writing that the contract shall be cancelled if payment is not received within thirty days of the postmarked date of the notice. The notice shall include the amount of payments due, the date the payment is due, and the date of cancellation.
3. If the purchaser fails to remit the payments due within thirty days of the postmarked date of the notice, then the seller, at its option, may either cancel the contract or may continue the contract as a nonguaranteed contract where the purchaser will receive full credit for all payments the purchaser has made into the trust towards the cost of the beneficiary's funeral service or merchandise from the provider.
4. Upon cancellation by the seller under this section, eighty-five percent of the contract payments shall be refunded to the purchaser. All remaining funds shall be distributed to the seller.
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(L. 2009 S.B. 1)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.458 - Alternative provider permitted, when.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2009
436.458. Alternative provider permitted, when. —
1. A purchaser may select an alternative provider as the designated provider under the original contract if the purchaser notifies the seller and original provider in writing of the purchaser's intent, stating the name of the alternative provider and the alternative provider consents to the new designation. Purchasers shall not be penalized or assessed any additional fee or cost for such transfer of the provider designation.
2. The seller shall pay the newly designated provider all payments owed to the original provider under the contract. The newly designated provider shall assume all rights, duties, obligations, and liabilities as the original provider under the contract. Interest shall continue to be allocated to the seller as provided under the contract.
3. In the case of a trust-funded contract and upon written notice to the seller of the purchaser's intent to select an alternative provider under subsection 1 of this section, the seller shall either continue the trust with the new provider in place of, and to receive all payment owed to, the original provider under the original agreement, or pay to the new trust all of the trust property, including principal and income.
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(L. 2009 S.B. 1)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.465 - Record-keeping requirements of seller.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2009
436.465. Record-keeping requirements of seller. —
A seller shall maintain:
(1) Adequate records of all preneed contracts and related agreements with providers, trustees of a preneed trust, and financial institutions holding a joint account established under sections 436.400 to 436.520;
(2) Records of preneed contracts, including financial institution statements and death certificates, shall be maintained by the seller for the duration of the contract and for no less than five years after the performance or cancellation of the contract.
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(L. 2009 S.B. 1)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.480 - Death or incapacity of purchaser, transfer of rights and remedies, to whom.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2009
436.480. Death or incapacity of purchaser, transfer of rights and remedies, to whom. —
Upon the death or legal incapacity of a purchaser, all rights and remedies granted to the purchaser under sections 436.400 to 436.520 shall be enforceable by and accrue to the benefit of the purchaser's legal representative or his or her estate, and all payments otherwise payable to the purchaser shall be paid to that person.
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(L. 2009 S.B. 1)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.485 - Violations, penalties.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 01 Jan 2017, 2 histories, see footnote
436.485. Violations, penalties. —
1. Any person, including the officers, directors, partners, agents, or employees of such person, who shall knowingly and willfully violate or assist or enable any person to violate any provision of sections 436.400 to 436.520 by incompetence, misconduct, gross negligence, fraud, misrepresentation, or dishonesty is guilty of a class D felony. Each violation of any provision of sections 436.400 to 436.520 constitutes a separate offense and may be prosecuted individually. The attorney general shall have concurrent jurisdiction with any local prosecutor to prosecute under this section.
2. Any violation of the provisions of sections 436.400 to 436.520 shall constitute a violation of the provisions of section 407.020. In any proceeding brought by the attorney general for a violation of the provisions of sections 436.400 to 436.520, the court may order all relief and penalties authorized under chapter 407 and, in addition to imposing the penalties provided for in sections 436.400 to 436.520, order the revocation or suspension of the license or registration of a defendant seller, provider, or preneed agent.
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(L. 2009 S.B. 1, A.L. 2014 S.B. 491)
Effective 1-01-17
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.490 - Sale of business assets of provider — report to board required, contents.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2009
436.490. Sale of business assets of provider — report to board required, contents. —
1. A provider that intends to sell or otherwise dispose of all or a majority of its business assets, or its stock if a corporation, shall notify the board at least sixty days prior to selling or otherwise disposing of its business assets or stock, or ceasing to do business as a provider, and shall file a notification report on a form established by the board.
2. The report required by this section shall include:
(1) The name, phone number, and address of the purchasers of any outstanding preneed contract for which the licensee is the designated provider;
(2) The name and license numbers of all sellers authorized to designate the licensee as a provider in a preneed contract;
(3) The name, address, and license number of the provider assuming or agreeing to assume the licensee's obligations as a provider under a preneed contract, if any;
(4) The name, address, and phone number of a custodian who will maintain the books and records of the provider containing information about preneed contracts in which the licensee is or was formerly designated as provider;
(5) A final annual report containing the information required by section 436.460;
(6) The date the provider intends to sell or otherwise dispose of its business assets or stock, or cease doing business; and
(7) Any other information required by any other applicable statute or regulation enacted pursuant to state or federal law.
3. Within three days after the provider sells or disposes of its assets or stock or ceases doing business, the former provider shall notify each seller in writing that the former provider has sold or disposed of its assets or stock or has ceased doing business.
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(L. 2009 S.B. 1)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.500 - Sale of business assets by seller, report to board required, contents.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2009
436.500. Sale of business assets by seller, report to board required, contents. —
1. A seller that intends to sell or otherwise dispose of all or a majority of its business assets or its stock shall notify the board at least sixty days prior to selling or otherwise disposing of its assets or stock, or ceasing to do business as a seller, and shall file a notification report on a form established by the board.
2. The report required by this section shall include:
(1) A notarized and signed statement from the person assuming or agreeing to assume the obligations of the seller indicating that the assuming seller has been provided with a copy of the seller's final annual report and has consented to assuming the outstanding obligations of the seller;
(2) In lieu of the notarized statement required by subdivision (1) of this subsection, the seller may file a plan detailing how the assets of the seller will be set aside and used to service all outstanding preneed contracts sold by the seller; and
(3) Any other information required by any other applicable statute or regulation enacted pursuant to state or federal law.
3. Within thirty days after assuming the obligations of a seller under this section, the assuming seller shall:
(1) Notify each provider in writing that the former seller has sold or disposed of its assets or stock or has ceased doing business; and
(2) Provide written notification to the purchasers of each preneed contract assumed by the seller indicating that the former seller has transferred ownership or has ceased doing business.
4. Nothing in this section shall be construed to require the board to audit, inspect, investigate, examine, or edit the books and records of a seller subject to the provisions of this section nor shall this section be construed to amend, rescind, or supersede any duty imposed on, or due diligence required of, an entity assuming the obligations of the seller.
5. The office of the attorney general shall have the authority to initiate legal action to compel or otherwise ensure compliance with this section by a former provider licensee.
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(L. 2009 S.B. 1)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.505 - Credit life insurance may be offered to purchaser.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2009
436.505. Credit life insurance may be offered to purchaser. —
A preneed contract may offer the purchaser the option to acquire and maintain credit life insurance on the life of the purchaser. Such insurance shall provide for the payment of death benefits to the seller in an amount equal to the total of all contract payments unpaid as of the date of such purchaser's death, and shall be used solely to make those unpaid payments. Any such credit life insurance shall be provided by a duly authorized insurance company and the preneed contract shall clearly identify the name of the insurer and the amount of payment allocated to the premium payment for the credit life. No seller or provider may provide any form of self insured credit life.
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(L. 2009 S.B. 1)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.510 - Seller's failure to make timely payment, effect of — rights of purchaser.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2009
436.510. Seller's failure to make timely payment, effect of — rights of purchaser. —
If a seller shall fail to make timely payment of an amount due a purchaser or a provider under the provisions of sections 436.400 to 436.520, the purchaser or provider, as appropriate, shall have the right, in addition to other rights and remedies against such seller, to make demand upon the trustee of the preneed trust for the contract to distribute to the purchaser or provider from the trust, as damages, an amount equal to all deposits made into the trust for the contract.
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(L. 2009 S.B. 1)
2023 Missouri Revised Statutes › Title XXVIII - Contracts and Contractual Relations › Chapter 436 - Special Purpose Contracts › Section 436.520 - Rulemaking authority.

Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS
Chapter 436
• Effective - 28 Aug 2009
436.520. Rulemaking authority. —
1. The board shall promulgate and enforce rules for administration and enforcement of sections 436.400 to 436.520 including the establishment of the amount of any fees authorized thereunder for the transaction of its business and for standards of service and practice to be followed for the licensing and registration of providers, sellers, and preneed agents deemed necessary for the public good and consistent with the laws of this state. Such fees shall be set at a level to produce revenue which does not substantially exceed the cost and expense of administering this chapter.
2. Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly under chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2009, shall be invalid and void.
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(L. 2009 S.B. 1)