§ 20-17-1014 - Permanent maintenance fund -- Trustees. - Arkansas Statutes

20-17-1014. Permanent maintenance fund -- Trustees.

Each cemetery company subject to this subchapter shall establish or transfer the permanent maintenance fund, the income from which can only be used for general maintenance, administration, and preservation of the cemetery, to:

(1) A state or national bank with trust powers; or

(2) Three (3) trustees, only one (1) of whom may have any direct or indirect financial or pecuniary interest in the cemetery, provided all trustees who make disbursements from the trust fund shall furnish a fidelity bond with corporate surety thereon, payable to the trust fund, in a penal sum not less than one hundred percent (100%) of the value of the trust fund principal at the beginning of each calendar year. This bond shall be deposited with the Arkansas Cemetery Board; or

(3) An individual trustee, who in behalf of the cemetery company, shall deposit designated permanent maintenance funds directly into a savings account or certificate of deposit in a state or national bank or savings and loan association in this state not less than forty-five (45) days after collection, provided:

(A) All funds so deposited are federally insured;

(B) The funds are restricted so that the principal amount of the funds cannot be withdrawn without the written approval of, and on a form approved by, the Securities Commissioner; and

(C) Not less than one (1) time a year, interest from the funds may be withdrawn by the individual trustee in behalf of the cemetery company for purposes permitted by this subchapter.