Section 5-709 - Disbursement of money - On termination of contract. - Maryland Statutes

§ 5-709. Disbursement of money - On termination of contract.
 

(a)  By cancellation.-  

(1) A buyer may cancel a preneed burial contract as to preneed goods not delivered or preneed services not performed if the buyer: 

(i) permanently moves more than 75 miles from the cemetery specified in the preneed burial contract; and 

(ii) gives to the seller written notice, under oath, of the move and includes the buyer's new permanent address. 

(2) In that event: 

(i) the seller shall certify to the trustee: 

1. the cancellation of the preneed burial contract; 

2. the amount of the remaining specific funds applicable to the preneed burial contract; and 

3. the name and address of the buyer; and 

(ii) the trustee shall then pay to the buyer the remaining specific funds and accrued interest. 

(b)  Cancellation of purchase.-  

(1) Notwithstanding subsection (a) of this section, by written notice, a buyer may cancel the purchase of a casket or casket vault under a preneed burial contract at any time prior to the time the buyer needs the casket or casket vault for burial. 

(2) In that event: 

(i) the seller shall certify to the trustee: 

1. the cancellation of the purchase of the casket or casket vault under the preneed burial contract; 

2. the amount of the specific funds applicable to the casket or casket vault under the preneed burial contract; and 

3. the name and address of the buyer; 

(ii) the trustee shall pay to the buyer the specific funds and interest accrued on those funds; and 

(iii) in addition to the refund paid by the trustee, the seller shall pay to the buyer an amount of money necessary to provide the buyer with a refund of 100% of the money paid for the casket or casket vault under the preneed burial contract. 

(c)  By default.- If a buyer fails to provide written notice of cancellation and defaults on a preneed burial contract and, as a result, the seller terminates the preneed burial contract: 

(1) the seller shall certify to the trustee: 

(i) the default and termination of the preneed burial contract; 

(ii) the amount of the specific funds; and 

(iii) the reasonable expenses of the seller; and 

(2) the trustee shall then pay: 

(i) to the buyer, those specific funds and accrued interest, less the reasonable expenses of the seller; and 

(ii) to the seller, the reasonable expenses of the seller. 

(d)  By dormancy.- If specific funds on deposit in a trust account have been dormant for at least 50 years since the date of the last deposit or disbursement and the seller cannot locate the buyer: 

(1) the seller shall certify to the trustee: 

(i) that the trust account is dormant and the buyer cannot be located; and 

(ii) the amount of the specific funds; and 

(2) the trustee shall then pay to the seller those specific funds and accrued interest. 
 

[An. Code 1957, art. 23, § 165B; 1992, ch. 4, § 2; 1997, ch. 675, § 1; 1998, ch. 664.]