Section 27-17A-34 Disbursement of funds. - Alabama Statutes

Section 27-17A-34

Disbursement of funds.

(a) Disbursement of funds discharging any preneed contract for funeral services or funeral merchandise fulfilled after May 1, 2002, shall be made by the trustee to the certificate holder upon receipt by the trustee of a certification of the certificate holder that the preneed contract has been performed in whole or in part. Any trustee accepting preneed contract proceeds under this article may rely upon the certification of the certificate holder as herein required to be made, and shall not be liable to anyone for such reliance. If the contract is only partially performed, the disbursement shall only cover that portion of the contract performed. In the event of any contract default by the contract purchaser, or in the event that the funeral merchandise or funeral service contracted for is not provided, the trustee shall return, within 30 days after its receipt of a written request therefor, 100 percent of the funds paid on the contract and the income and accretion thereon to the certificate holder or to its assigns, subject to the provisions of Section 27-17A-33.

(b) If the preneed contract so provides, the trustee may distribute trust income allocable to the preneed contract to the certificate holder on an annual basis, so long as the distribution is consistent with subsection (b) of Section 27-17A-32.

(Act 2002-74, p. 221, §1.)