2006 Louisiana Laws - RS 8:502 — Payments to trust; amounts required

§502.  Payments to trust; amounts required

A.  Any cemetery authority or other entity entering into a contract for the sale of such personal property or services as described in R.S. 8:501 of this Chapter, when the delivery of the property or services is to be made at an uncertain future date or more than one hundred twenty days after receipt of final payment under such contract, shall deposit into a trust fund established for that purpose  seventy percent of the gross receipts, less sales taxes, from the sales of such personal property or services.

B.  The trust fund shall be administered by a trustee in accordance with a written trust instrument.

C.  Each deposit herein required shall be paid into the trust fund so established within twenty days after the close of the month of receipt from the purchaser by the cemetery authority or other entity, except that the entire amount required to be deposited based upon the sales price, less sales taxes, shall be so deposited in trust within seven years from the date of the original sale, regardless of whether or not all amounts due therefor shall have actually been paid.

D.  Each deposit into any such trust fund shall be identified by the cemetery authority or other entity by furnishing the trustee and the purchaser with the name of the purchaser, the amount of the retail sales price, and the amount of money required to be deposited, together with a copy of the contract of sale.  The cemetery authority or other entity shall allocate to each separate account its share of the total income earned in each calendar year, based upon the proportion that the principal balance in each said account bears to the total principal balances in all such accounts.  For this purpose each deposit made before June thirtieth of each year shall be considered as having been made on the first day of the year, but deposits made after June thirtieth shall not participate in the distribution of income earned during that calendar year.  The trustee may commingle the deposits in such trust fund for purposes of the management thereof and the investment of funds therein.  Annually, the trustee shall advise the cemetery authority or other entity of the amount of income received by the whole fund for that calendar year.  The cemetery authority or other entity shall keep detailed records of the amount of money deposited from time to time.

E. The trust shall be operated in conformity with R.S. 8:454(B) and 465(A) with respect to the nature and character of the trust and duties of the trustee.

Acts 1974, No. 417, §1.  Acts 1983, No. 525, §1; Acts 2003, No. 502, §1, eff. Jan. 1, 2004; Acts 2004, No. 67, §1.