GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2013
S 3
SENATE BILL 403
Commerce Committee Substitute Adopted 5/9/13
Corrected Copy 5/13/13
Short Title: Investments/Cemeteries/Funeral Funds. |
(Public) |
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Sponsors: |
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Referred to: |
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March 26, 2013
A BILL TO BE ENTITLED
AN ACT to amend the laws regulating investments of cemeteries and preneed funeral funds.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 65-60.1(e) reads as rewritten:
"(e) Any trustee
shall invest and reinvest cemetery trust funds in the same manner as
provided by law for the investment of trust funds by the clerk of the superior
court; provided, however, that this subsection does not apply to a perpetual
trust fund described in G.S. 65-64 or cemetery trust funds held in a fund
designated as Trust Fund "A" pursuant to G.S. 65-64(e), which
may be invested and reinvested in accordance with G.S. 32-71.Article
9 of Chapter 36C of the General Statutes."
SECTION 2. G.S. 90-210.61(a)(1) reads as rewritten:
"(a) Preneed funeral funds are subject to the provisions of this Article and shall be deposited or applied as follows:
(1) If the preneed
funeral contract purchaser chooses to fund the preneed funeral contract by a
trust deposit or deposits, the preneed licensee shall deposit all preneed
funeral funds with in an insured account in a financial
institution, in trust, in the preneed licensee's name as trustee within five
business days.and invest and reinvest funds in accordance with Article 9
of Chapter 36C of the General Statutes. The preneed licensee, at the time
of making the deposit as trustee, shall furnish to the financial institution
the name of each preneed funeral contract purchaser and the amount of payment
on each for which the deposit is being made. The preneed licensee may establish
an individual trust fund for each preneed funeral contract contract
but also is specifically authorized to establish commingled trust accounts for
investment and reinvestment of preneed funeral funds of multiple preneed
funeral contracts. or a common trust fund for all preneed funeral
contracts.The trust accounts shall be carried in the name of the preneed
licensee as trustee, but in all cases, accounting records shall be
maintained for each individual preneed funeral contract purchaser showing the
amounts deposited and invested, and interest, dividends, increases, and
accretions earned.accretions, decreases, and the taxes and expenses
which may be charged under this subdivision. Except as provided in this
Article, all interest, dividends, increases, or accretions earned by the funds
shall remain with the principal.in the trust account. The trust
fund may be charged with applicable taxes and for reasonable charges paid by
the trustee to itself or others for the preparation of fiduciary tax returns.
Penalties charged by a financial institution for early withdrawals caused by a
transfer pursuant to G.S. 90-210.63 shall be paid by the preneed licensee.
Penalties charged as a result of other early withdrawals as permitted by this
Article shall be paid from the trust fund, and the financial institution shall
give the preneed funeral contract purchaser prompt notice of these
penalties."
SECTION 3. This act is effective when it becomes law.