54.1-2317 - Who may serve as trustee of perpetual care trust fund. - Virginia Statutes

§ 54.1-2317. Who may serve as trustee of perpetual care trust fund.

A. The trustee of the perpetual care trust fund shall be appointed by theperson owning, operating, or developing a cemetery company. If the trustee isother than a Virginia trust company or trust subsidiary or a federallyinsured bank or savings institution doing business in the Commonwealth, thetrustee shall be approved by the Board.

A trustee that is not a Virginia trust company or trust subsidiary or afederally insured bank or savings institution doing business in theCommonwealth shall apply to the Board for approval, and the Board shallapprove the trustee when it has become satisfied that the applicant:

1. Employs and is directed by persons who are qualified by character,experience, and financial responsibility to care for and invest the funds ofothers;

2. Will perform its duties in a proper and legal manner and the trust fundsand interest of the public generally will not be jeopardized; and

3. Is authorized to do business in the Commonwealth and has adequatefacilities to perform its duties as trustee.

B. If the trustee is other than a Virginia trust company or trust subsidiaryor a federally insured bank or savings institution doing business in theCommonwealth, the trustee shall furnish a fidelity bond with corporate suretythereon, payable to the trust established, which shall be designated"Perpetual Care Trust Fund for (name of cemetery company)," in a sum equalto not less than 100 percent of the value of the principal of the trustestate at the beginning of each calendar year, which bond shall be depositedwith the Board.

C. If the trustee is other than a Virginia trust company or trust subsidiaryor a federally insured bank or savings institution doing business in theCommonwealth and if it appears that an officer, director or employee of thetrustee is dishonest, incompetent, or reckless in the management of aperpetual care trust fund, the Board may bring an action in the appropriatecourt to remove the trustee and to impound the property and business of thetrustee as may be reasonably necessary to protect the trust funds.

(1998, cc. 708, 721.)