La. Admin. Code tit. 46 § XIII-1705

Current through Register Vol. 50, No. 11, November 20, 2024

Section XIII-1705 - Withdrawals from Merchandise Trust Fund

A. The merchandise trust funds shall be held in trust both as to principal and income earned thereon, and shall remain intact, except that the costs of operation of the trust may be deducted from the income earned thereon, until delivery of the personal property is made or the services are performed. A cemetery, cemetery authority, or other entity required to establish and maintain a merchandise trust fund may not charge the income of the trust for its administrative costs for the operation of the cemetery, cemetery authority, other entity, or trust funds. Within a merchandise trust fund, realized capital gains and losses shall be allocated in the same manner as income.

B. At the time of withdrawal, if a cemetery or other entity has not allocated the income earned to each separate account, as required by the Louisiana Cemetery Act, only the funds on deposit for such account shall be withdrawn. Upon satisfactory proof to the board that such income has been allocated to a particular account, the board may, in its discretion, authorize the withdrawal of such funds.

C. Prior to a withdrawal, if the cemetery or other entity is delinquent in its deposits to the merchandise trust fund, the board may require verification that all deposits on the pending withdrawals are current before such withdrawals can be made.

D. Upon satisfactory proof to the board that there has been an error or overfunding of the trust the board may, in its sole discretion, authorize the withdrawal or credit of such funds from the trust.

E. In the event that a cemetery or other entity converts accounts previously trusted to storage and presents satisfactory proof to the board that the merchandise to be stored is the same product selected by the customer and satisfactory proof of compliance with all storage requirements, the board may, at its discretion, authorize the withdrawal consistent with the requirements contained in the Louisiana Cemetery Act and the rules of the board. If the cemetery or other entity intends to substitute the product previously selected by the customer, a certification of acceptance of the substituted product must be obtained from the customer and retained by the cemetery or other entity in the contract file of the customer prior to the approval of the withdrawal by the board.

F. For the purposes of withdrawal, certification of delivery shall include:

1. for services:

a. a copy of the death certificate; or

b. a copy of the burial transit permit; or

c. a copy of the published obituary ;

2. for merchandise:

a. if the merchandise is delivered prior to the death of the contract beneficiary, such certification shall include:

i. a written statement certifying delivery of the merchandise or personal property and signed by an authorized representative of the cemetery or other entity; or

ii. a photograph of the merchandise or personal property as installed on the cemetery space; or

iii. a copy of the paid-in-full invoice;

b. if the merchandise is delivered after the death of the contract beneficiary, such certification shall include:

i. at least one of the items listed in Paragraph 1, above; and

ii. at least one of the items listed in Subparagraph 2.a, above;

3. all certification documents to support such withdrawals must be maintained by the cemetery or other entity in the contract file of the customer and must be reviewable and verifiable by the board.

La. Admin. Code tit. 46, § XIII-1705

Promulgated by the Office of the Governor, Cemetery Board, LR 39:2749 (October 2013).

AUTHORITY NOTE: Promulgated in accordance with R.S. 8:67.