{"data":{"id":"us-ky/krs-367.954","jurisdiction":"us-ky","citation":"KRS 367.954","heading":"Forty percent of funds paid for cemetery merchandise to be held in trust","body":"for purchaser until delivery -- Bond in lieu of trust fund.\n(1) Forty percent (40%), not including interest or finance charges, of all payments of\nmoney made to any person, partnership, association, or corporation upon any\nagreement or contract, or any series or combination of agreements or contracts,\nwhich has for a purpose the furnishing or delivery of cemetery merchandise, which\nwithin six (6) months of the date of the con tract is not delivered by attachment to\nthe realty and permanent installation or which is not stored in a bonded warehouse\nwith the receipt of ownership issued by the manufacturer in the name of the\npurchaser and transmitted to the purchaser are held to be  trust funds. The person,\npartnership, association, or corporation receiving the payments shall deposit forty\npercent (40%) of all payments received on a preneed cemetery merchandise\ncontract in a trust fund account within six (6) months of the date of con tract, and\nforty percent (40%) of all payments received thereafter on said contract shall be\ndeposited in the trust fund account within thirty (30) days after each calendar\nquarter of operation. The trustee shall be the financial institution holding said funds.\nAll of the interest, dividends, increases, or accretions of whatever nature earned by\nthe funds deposited in a trust account shall remain with the principal of such\naccount and become a part thereof, subject to all of the regulations concerning the\nprincipal of said fund herein contained.\n(2) All trust funds mentioned in this section shall be deposited in the name of the\nperson making said deposits, with the financial institution as trustee, and shall be\nheld together with the interest, dividends, or accretions thereon, in trust, subject to\nthe provisions of KRS 367.932 to 367.974 and 367.991. The person at the time of\nmaking deposit or investment shall furnish to the financial institution the name of\neach payor, and the amount of payment on each accou nt for which the deposit or\ninvestment is being made.\n(3) Forty percent (40%) of all payments, not including interest or finance charges,\nmade under the agreement, contract, or plan are and shall remain trust funds with\nthe financial institution, until the  financial institution receives a sworn affidavit\nfrom the depositor stating one of the following:\n(a) That the delivery of all merchandise by attachment to the realty, or permanent\ninstallation of the merchandise has been completed and that there has been\nfull performance of all services called for by the agreement, contract or plan;\nor\n(b) That there has been delivery of all of the merchandise called for by the\nagreement by storing the same in a bonded warehouse with the receipt of\nownership issued by the  manufacturer in the name of the purchaser and\ntransmitted to the purchaser.\nUpon receiving said affidavit, the financial institution shall remit the funds on\ndeposit for the performed contract, plus interest, to the depositor. Release of funds\nmay also b e made pursuant to a request for a refund or cancellation under KRS\n367.932 to 367.974 and 367.991.\n(4) In the event that a purchaser is in default of a preneed cemetery merchandise\ncontract, the financial institution shall release to the depositor the fun ds, plus\ninterest, deposited on behalf of the defaulted contract upon receiving from the\ndepositor a sworn affidavit stating that the purchaser is in default of the preneed\ncemetery merchandise agreement, the date of the default, an explanation of the\ndefault, and that the depositor has mailed a copy of the affidavit to the purchaser's\nlast known address at least thirty (30) days prior to said request for release.\n(5) Deposits to such funds and the amounts deposited may be commingled, but the\naccounting records shall establish a separate account for each prepaid contract and\nshall show amounts deposited and the income and loss occurring thereon with\nrespect to each contract.\n(6) The trustee may rely upon all certifications and affidavits made pursuant to or\nrequired by the provisions of KRS 367.932 to 367.974 and 367.991, and shall not\nbe liable to any person for such reliance.\n(7) In lieu of the trust fund deposits required herein, the person may post with the\nAttorney General's Office of Consumer Protection , a good and sufficient bond by a\nsurety company licensed to do business in Kentucky and in an amount sufficient to\ncover all payments made by or on account of purchasers who have not received the\npurchased property and services. This bond shall be held fo r the benefit of a\npurchaser, or his or her heir or assign or duly authorized representative, who suffers\na loss of money paid pursuant to a preneed cemetery merchandise contract entered\ninto after July 13, 1984, due to the insolvency of the registrant, or  failure to provide\nthe cemetery merchandise called for by contract that has been paid in full and not\nprovided after a ninety (90) day request in writing to do so. If a bond is posted, the\nAttorney General's office shall receive sixty (60) days' written notice in the event of\ncancellation. On or before the cancellation date, the person shall comply with the\ntrust fund requirements herein or post another good and sufficient bond.\n(8) Any person selling a preneed cemetery merchandise contract shall pay to the\nAttorney General five dollars ($5), for each said contract entered into and all of\nwhich fees shall be remitted by the person collecting them to the Attorney General\nat least once each month, and such funds shall be used by the Attorney General in\nadministering this chapter.","path":["KRS Chapter 367"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=54565","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:06Z","sha256":"0eeb828de10d05e0f5beaa887b2f6007a5347e8c7afd0bfb8dbdd66d5016b2e5","source_id":"us-ky","stale":false,"prev":"us-ky/krs-367.952","next":"us-ky/krs-367.956"},"notice":"GroundRules: Original legal text. Not legal advice."}