{"data":{"id":"us-ky/krs-367.958","jurisdiction":"us-ky","citation":"KRS 367.958","heading":"Sale of mausoleum or underground crypts or columbaria.","body":"(1) Every person before engaging in a sale, contract for sale, reservation for sale or\nagreement for sale of a mausoleum crypt within a mausoleum, underground crypt\nwithin a crypt section, or columbarium niche within a mausoleum prior to the\ncompletion of the construction thereof, shall give notice in writing to the Attorney\nGeneral of the commencement of such sale at least thirty (30) days prior thereto and\nregister with the Attorney General. Such registration shall be on forms provided by\nthe Attorney General.\n(2) Every person engaged in the sale of a mausoleum crypt, underground crypt or\ncolumbarium niche shall commence construction thereof within twenty -four (24)\nmonths of the date of such sale and shall complete such construction within sixty\n(60) months of the date of such sale. A delay caused by strike, national emergency,\nshortage of materials, civil disorder, natural disaster or any like occurrence beyond\nthe control of such person shall extend the time of such commencement and\ncompletion by the length o f such delay. This subsection shall not apply to the sale\nof mausoleum crypts, underground crypts or columbarium niches if there has been\nany sale in the same project prior to July 13, 1984. Prior projects shall have\ncommenced construction thereof within t hirty-six (36) months of the date of such\nsale and shall complete construction within seventy -two (72) months of the date of\nsuch sale.\n(3) Every person who plans to offer for sale space in a section of a mausoleum or bank\nof underground crypts prior to its construction shall establish a preconstruction trust\naccount. The trust account shall be administered and operated in the same manner\nas the merchandise trust account provided for in this chapter and shall be exclusive\nof the merchandise trust account or  such other trust accounts or funds that may be\nrequired by law.\n(4) Every person shall place thirty -six percent (36%), not including interest or finance\ncharges, of all payments of money made to any person pursuant to any agreement,\ncontract or any series  or combination of agreements or contracts which are for the\npurchase of sections in a mausoleum, columbarium, or any kind of underground\ncrypt which at the time of the payment of money have not been completely and\ntotally constructed, in a trust fund acco unt in a financial institution within thirty\n(30) days after each calendar quarter of operations. Excepted therefrom, however,\nare persons who have constructed in the past their own mausoleum using primarily\nequipment owned by the self -constructing person and their own personnel with a\nminimum of subcontracting, and in that event there shall be deposited a minimum\nof twenty percent (20%) of all payments of money, subject, however, to the actual\ncost. If, from project to project, their actual cost is in exce ss of twenty percent\n(20%), the full cost percentage shall be deposited from project to project, not to\nexceed thirty -six percent (36%). At the time of notification to the Attorney\nGeneral's office the self -constructing mausoleum person shall also notify t he\nAttorney General that he intends to self -construct and the percentage of\ncontribution of trust that is required.\n(5) All trust funds mentioned in this section shall be deposited in the name of the\nperson depositing said funds, with the financial institu tion 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 financia l institution the name of\neach payor, and the amount of payment on each account for which the deposit or\ninvestment is being made.\n(6) 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(7) All payments made to the preconstruction trust fund account shall remain in the\ntrust fund with the financial i nstitution until the financial institution receives a\ncertified statement from the depositor stating that the particular project for which\nthe preconstruction trust fund has been established is totally completed. During the\nconstruction stage, trust funds may be withdrawn by presenting the trustee with\nappropriate evidence of expenditure for construction cost. The trustee shall\nthereupon disburse moneys from the trust fund to pay for the expenses of\nconstruction presented for payment.\n(8) A 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(9) If a mausoleum section or bank of underground crypts is not completed  within the\ntime limits set out in KRS 367.932 to 367.974 and 367.991, the financial institution\nacting as trustee, if any, may contract for and cause said project to be completed\nand paid therefor from the trust account funds deposited to the project's ac count,\npaying any balance, less cost and expenses, to the depositor. In the event there is no\ncorporate trustee, or the trustee chooses not to serve in the capacity to complete\nconstruction, the Attorney General shall appoint a committee to serve as truste es to\ntrust account funds deposited to the project's account, paying any balance, less cost\nand expenses, to the cemetery company.\n(10) If it is determined by the trustee after the expiration of the time of construction set\nout above that there is not enou gh money in the trust fund account to complete the\nproject, the trustee shall make a refund of all moneys held to all purchasers, or his\nheirs or assigns, in the amount of the deposit to the credit of their particular contract\nand all income those funds ha ve earned. The purchasers shall be entitled to receive\nany remainder of the purchase price paid from the depositor. However, nothing\nherein contained shall relieve any person from any liability for nonperformance of\nthe contract terms.\n(11) If temporary entombment or inurnment is not used, upon written notification to the\nseller, the personal representative or any purchaser of such space who dies before\ncompletion of construction shall be entitled to a refund of all moneys paid into the\npreconstruction trust fund for such space, including any income earned thereon, and\nfrom the seller, the remainder of the purchase price paid.\n(12) In lieu of the trust fund deposits required herein, the person may post with the\nAttorney General's Office of Con sumer 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 for the benefit of any\npurchaser, or his or her heir or assign or duly authorized representative, who suffers\na loss of money paid for a preconstructed mausoleum crypt or niche or underground\ncrypt after July 13, 1984, due to the insolvency o f the registrant, or failure to\nconstruct within the time limits set out herein. If a bond is posted, the Attorney\nGeneral's office shall receive sixty (60) days' written notice in the event of\ncancellation. On or before the cancellation date, the person s hall comply with the\ntrust fund requirements herein or post another good and sufficient bond.\n(13) Any person selling preconstruction mausoleum, columbarium, or underground crypt\ncontracts shall pay to the Attorney General five dollars ($5) for each sale o f said\ncontract and all of which fees shall be remitted by the person collecting them to the\nAttorney General at least once each month, and such funds shall be used by the\nAttorney General in administering this chapter.","path":["KRS Chapter 367"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=54566","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:06Z","sha256":"6cd3944696fc6f4aca075bbb40980f8b5d04b541114a4d531a121da27a2d343d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-367.956","next":"us-ky/krs-367.960"},"notice":"GroundRules: Original legal text. Not legal advice."}