2005 California Health and Safety Code Sections 8775-8779.5 Article 4. Special Care

8775.  A cemetery authority which has established an endowment care
fund may also take and hold any property bequeathed, granted, or
given to it in trust to apply the principal, or proceeds, or income
to either or all of the following purposes:
   (a) Improvement or embellishment of all or any part of the
cemetery or any lot in it.
   (b) Erection, renewal, repair, or preservation of any monument,
fence, building, or other structure in the cemetery.
   (c) Planting or cultivation of trees, shrubs, or plants in or
around any part of the cemetery.
   (d) Special care or ornamenting of any part of any plot, section,
or building in the cemetery.
   (e) Any purpose or use not inconsistent with the purpose for which
the cemetery was established or is maintained.
8776.  The sums paid in or contributed to the fund authorized by
this article are hereby expressly permitted as and for a charitable
and eleemosynary purpose.  Such contributions are a provision for the
discharge of a duty due from the persons contributing to the person
or persons interred or to be interred in the cemetery and likewise a
provision for the benefit and protection of the public by preserving,
beautifying, and keeping cemeteries from becoming unkept and places
of reproach and desolation in the communities in which they are
situated.  No payment, gift, grant, bequest, or other contribution
for such purpose is invalid by reason of any indefiniteness or
uncertainty of the persons designated as beneficiaries in the
instruments creating the fund, nor is the fund or any contribution to
it invalid as violating any law against perpetuities or the
suspension of the power of alienation of title to property.
8777.  All money or property received by a cemetery authority for
deposit in a special care fund shall be placed in the custody of the
trustee or trustees thereof within 30 days after receipt by the
cemetery authority.  The corpus of special care trusts shall be
invested and reinvested and kept invested as authorized by Section
8778.
8778.  (a) The following shall be eligible investments for all
special care trusts:
   (1) Bonds of the United States or this state, or of any county,
city or city and county in this state.
   (2) Bonds which are legal investments for commercial banks in this
state.
   (3) Certificates of deposit or other interest-bearing accounts in
any bank in this state insured by the Federal Deposit Insurance
Corporation.
   (4) Investment certificates or shares in any state or federally
chartered savings and loan association insured by the Federal Savings
and Loan Insurance Corporation.
   (5) Investments in first trust deeds on improved real estate,
provided such loans require monthly amortization of principal and
interest and are fully amortized within 30 years or the term of the
loan, whichever comes first.  No loan shall be made to the cemetery
authority; director, officer, or stockholder of a cemetery authority,
or trustees of the special care funds; or partners, relatives,
agents, or employees thereof.
   (b) With respect only to special care trusts created by
irrevocable agreement, any investment which is lawful for endowment
care funds under Sections 8751 and 8751.1 shall also be a lawful
investment for such special care trusts.
8779.  Nothing in this article shall require liquidation or
transmutation of any lawful investment existing on December 31, 1976,
but any reinvestment shall be governed by Section 8778, and any
interest or other increment actually received on account of such an
investment shall be reinvested only as provided in Section 8778.
8779.5.  Each special care fund established pursuant to this article
shall be held in trust and managed by either the board of trustees
of the cemetery authority's endowment care fund or by a board of
trustees meeting the qualifications prescribed by this chapter for
such a board of trustees.  However, nothing in this section shall be
construed to modify the terms of any special care trust established
prior to January 1, 1977.