KRS 367.952: Perpetual care and maintenance -- Creation of funds by cemetery

companies -- Required payments -- Local government exemption --

Termination, distribution, and use of funds in local government trust fund.

(1) Every seller of the items described in subs ection (2)(a) of this section shall first

provide for the future care and maintenance of such items, and to accomplish this

purpose shall cause to be established in a financial institution authorized by law to

administer trust funds, or in any other financially sound entity with the prior written

approval of the Attorney General, an irrevocable trust fund to be known as a

perpetual care and maintenance fund. The income of such funds shall be used solely

for the general care, maintenance, and embellishment o f the cemetery, except as

otherwise provided herein.

(2) (a) Every seller of the items described in this paragraph shall place the following

amounts into the perpetual care and maintenance fund of the cemetery in

which the item is located within thirty (30 ) days after each calendar quarter of

operations for each payment of each sale which occurs or contract of sale

entered into after July 13, 1984:

1. Twenty percent (20%) of the gross selling price of each grave space,

with a minimum of twenty dollars ($20) per grave space;

2. Underground crypt, five percent (5%) of the gross selling price with a

minimum of twenty-five dollars ($25) per crypt;

3. Mausoleum crypt, five percent (5%) of the gross selling price with a

minimum of fifty dollars ($50) per mausoleum crypt; and

4. Columbarium niche, ten percent (10%) of the gross selling price with a

minimum of fifteen dollars ($15) per niche.

(b) For the purposes of this section, "gross selling price" shall not include interest,

carrying charges or finance charges.

(c) Every cemetery company hereinafter established shall create and maintain a

perpetual care and maintenance fund, depositing therein an initial deposit as

listed below, and shall submit proof thereof to the Attorney General prior to

the offering for sale of any burial rights. Any payment required under

paragraph (a) of this subsection shall be credited against the initial deposit

until the required sum has been reached:

1. In counties of fewer than 50,000 persons, $20,000;

2. In counties of 50,000 to 99,999 persons, $30,000;

3. In counties of 100,000 or more persons, $50,000.

(3) In the event that a purchaser is in default of a c ontract purchasing any of the items

described in subsection (2)(a) of this section, the financial institution shall release to

the depositor the funds, plus interest, deposited on behalf of the defaulted contract

upon receiving from the depositor a sworn a ffidavit stating that the purchaser is in

default of the contract, the date of the default, an explanation of the default and that

the depositor mailed a copy of the affidavit to the purchaser's last known address at

least thirty (30) days prior to said request for release.

(4) This section does not apply to any cemetery that is owned and operated by a local

government. For the purposes of this section, "local government" means cities,

counties, urban -county governments, charter county governments, consolid ated

local governments, and unified local governments.

(5) Any local government that has established a trust fund pursuant to subsection (1) of

this section may petition the Circuit Court pursuant to KRS 386B.2 -010 and

386B.2-030 for termination of the tru st and distribution of the funds to the local

government for use solely for the general care, maintenance, and embellishment of

the cemetery.

(6) Any funds distributed to the local government pursuant to subsection (5) of this

section shall be held separately from funds subject to the local government's general

power of appropriation.