2010 Michigan Compiled Laws
PREPAID FUNERAL AND CEMETERY SALES ACT
Chapter 328 - DEAD HUMAN BODIES
Act 255 of 1986 - PREPAID FUNERAL AND CEMETERY SALES ACT (328.211 - 328.235)
Act 255 of 1986
AN ACT to regulate the sale and providing of funeral and cemetery merchandise and services and other related interests; to regulate the use of funds received by sellers and providers of certain merchandise, funeral and cemetery services, land or interests in land, and related other interests; to prescribe certain powers and duties of certain departments and certain other state and local officers; to provide for the promulgation of rules and establishment of fees; and to provide for penalties and remedies.
History: 1986, Act 255, Eff. July 1, 1987 ;-- Am. 2004, Act 21, Eff. Jan. 1, 2005
Compiler's Notes: For transfer of powers and duties of certain occupational functions, boards, and commissions from the Department of Licensing and Regulation to the Department of Commerce, see E.R.O. No. 1991-9, compiled at MCL 338.3501 of the Michigan Compiled Laws.
- Section 328.211 - Short title.
- Section 328.212 - Meanings of words and phrases.
- Section 328.213 - Definitions; B to D.
- Section 328.214 - Definitions; D to M.
- Section 328.215 - Definitions; N to U.
- Section 328.216 - Certificate of registration to sell, provide, or agree to provide merchandise or services pursuant to prepaid contract; application; fee; duration of certificate; contents of application form; renewal of registration; sworn statement or special report; expiration of certificate; reinstatement of registration; grounds for denial of registration; compliance; petition for reconsideration; hearing.
- Section 328.217 - Deposit of funds with escrow agent; agreement to allow inspection and copying of records.
- Section 328.218 - Accounts, books, and records; special report; examination; corrective or penal action; examination, review, or audit of books and records; authorization of escrow agents to open records; statement in lieu of special report.
- Section 328.219 - Notice of purchase or assignment of business operations or prepaid contracts.
- Section 328.220 - Nonguaranteed or guaranteed price contracts; execution.
- Section 328.221 - Guaranteed price contract; requirements.
- Section 328.222 - Funds to be held in escrow by escrow agent; additional commission not subject to depository requirements; commission if contract price paid in installments; refund; qualifications and selection of escrow agent; authorized investments; fees and expenses; commingling; separate accounting of principal and income; notice to contract buyer; disbursement of funds; nonprofit corporation or association as escrow agent; furnishing statement to contract buyer.
- Section 328.223 - Cancellation of prepaid contract by contract buyer; notice; disbursement of principal and income; cancellation of contract by contract seller or provider; failure to use escrow account to make funeral arrangements; assignment or transfer of obligations.
- Section 328.224 - Liability for principal and income; investment of funds; changing escrow agent or depository.
- Section 328.225 - Prices or quotations of prices; requirements; exception; manipulation of prices prohibited; provision for revocation of contract; refund; disclosure of right to cancel contract and amount of refund; disclosure of commissions; services requiring mortuary science license or funeral establishment license; construction of act; designation of new contract beneficiary; notice; clear indication of nonguaranteed price contract, actual costs, and obligations.
- Section 328.226 - Prepaid funeral contract not in writing as voidable; agreement as to rate of interest; interest added or deducted in advance; computation of interest; financing of contract.
- Section 328.227 - Rules generally.
- Section 328.228 - Prohibited conduct; rules; administrative action.
- Section 328.229 - Irrevocable prepaid contract approved by family independence agency or department of community health; rules.
- Section 328.230 - Complaint; investigation; examination of books, records, contracts, and other documents; duties of department on determination of reasonable cause to believe in occurrence of violation; violation; hearing; duties of department on determination of violation.
- Section 328.231 - Violations; penalties.
- Section 328.232 - Conversion of funds as felony; violation as misdemeanor; penalties.
- Section 328.233 - Noncompliance with investment and depositing requirements; petition for appointment of receiver; notice; hearing; liquidation.
- Section 328.234 - Action to force compliance; damages; orders.
- Section 328.235 - Effective date.
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