N.Y. General Business Law § 750-r: Endowment care or similar trust funds

§ 750-r. Endowment care or similar trust funds. 1. A pet cemetery

which commenced operations prior to the effective date of this article

shall establish an endowment care or similar trust fund, the balance of

which shall not be less then twelve thousand dollars, by January first,

nineteen hundred ninety-five. The secretary of state may grant a waiver

to the provisions of this subdivision if an endowment care or similar

trust fund is established and twelve thousand dollars is placed in such

fund within a reasonable amount of time not to exceed ten years from the

effective date of this article and the provisions of this section will

present a significant financial hardship to the pet cemetery owner or

operator.

2. A pet cemetery which commences operations on or after the effective

date of this article, shall, prior to the acceptance of any moneys as

annual maintenance fees, establish an endowment care or similar trust

fund for the permanent operation and maintenance of the pet cemetery, in

an amount of not less than twelve thousand dollars.

3. The fiduciary holding such endowment care or similar trust fund

shall have such power to invest such fund as set forth in section 11-2.2

of the estates, powers and trusts law. The interest earnings of such

trust fund shall be used exclusively for the operation and maintenance

of such pet cemetery. Any distribution of principal of such option and

trust fund shall only be upon order of the supreme court of the county

where the pet cemetery is located, for good cause and exclusively for

the operation and benefit of such pet cemetery. Unless such distribution

of principal shall be as part of a removal of dedication for such pet

cemetery, such order shall additionally make adequate provision for the

permanent maintenance of the pet cemetery.

4. A pet cemetery, owned and operated by a not-for-profit corporation

that has in excess of one million dollars in its endowment care or

similar trust fund, may use any surplus income in such trust fund above

and beyond its costs for pet cemetery operation and maintenance in any

manner allowed by the not-for-profit corporation's charter or by-laws,

provided that the use of such surplus does not endanger the integrity of

such trust fund.

5. A pet cemetery, owned and operated by a not-for-profit corporation

that is a humane society may be granted a waiver of the provisions of

this section by the secretary of state if the secretary determines that

the interests of the pet owners will be adequately protected and the

provisions of this section present a significant financial hardship to

the pet cemetery owner.

6. Such trust funds are not invalid by reason of any indefiniteness or

uncertainty of the persons designated as beneficiaries, nor shall they

be invalid as violating any existing rule against perpetuities.