32-2194.27 - Arizona Statutes

32-2194.27. Restrictive use of income from endowed-care fund; obligation The irrevocable trust fund created under the provisions of section 32-2194.26 shall be evidenced by an instrument in writing and shall contain the following provisions: 1. There shall be designated a trustee for the endowed-care fund which shall be a financial institution authorized to do business in this state and authorized to act as trustee by the laws of this state for such investments. The trustee must be one in which no officer, director or owner in the cemetery is financially interested in any way. 2. The principal of the trust fund shall remain permanently intact and only the income therefrom shall be expended. It is the intent of this section that the income of the fund shall be used solely for the care of plots or other burial spaces sold to third persons with a provision for perpetual or endowed care and the care of such other portions of the cemetery immediately surrounding such plots as may be necessary to preserve the beauty and dignity of the plots sold. The fund or its income shall never be used for the development, improvement or embellishment of unsold portions of the cemetery so as to relieve the owner of the cemetery of the ordinary cost incurred in preparing such property for sale. 3. A financial institution acting as a trustee does not have a legal obligation to operate a cemetery other than providing trust fund income to the receiver or successor of a cemetery unable to meet its perpetual care obligations.