Text: S05708 Text: S05710 Text: S05700 - S05799 Text: S Index Bills and Amendments: General Index Bill History: General Index
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PAG LIN 1 1 Amend Senate File 2466 as follows: 1 2 #1. Page 1, by inserting before line 1 the 1 3 following: 1 4 "Section 1. Section 523A.1, Code Supplement 1995, 1 5 is amended to read as follows: 1 6 523A.1 TRUST FUND ESTABLISHED – INSURANCE. 1 7 1. a. Whenever an agreement is made by any 1 8 person, firm, or corporation to furnish, upon the 1 9 future death of a person named or implied in the 1 10 agreement, funeral services or funeral merchandise, a 1 11 minimum of eighty percent of all payments made under 1 12 the agreement shall be and remain trust funds until 1 13 occurrence of the death of the person for whose 1 14 benefit the funds were paid, unless the funds are 1 15 sooner released to the person making the payment by 1 16 mutual consent of the parties. Payments otherwise 1 17 subject to this section are not exempt merely because 1 18 they are held in certificates of deposit. The 1 19 commissioner may adopt rules to prohibit the 1 20 commingling of trust funds with other funds of the 1 21 seller. 1 22 b. Interest or income earned on amounts deposited 1 23 in trust under this section shall remain in trust 1 24 under the same terms and conditions as the payments 1 25 made under the agreement, except that the seller may 1 26 withdraw so much of the interest or income as 1 27 represents the difference between the amount needed to 1 28 adjust the trust funds for inflation as set by the 1 29 commissioner based on the consumer price index and the 1 30 interest or income earned during the preceding year 1 31 not to exceed fifty percent of the total interest or 1 32 income, on a calendar year basis. The early 1 33 withdrawal of interest or income pursuant to this 1 34 provision does not affect the purchaser's right to the 1 35 full refund or credit of such interest or income in 1 36 the event the payments and interest in trust are 1 37 released to the purchaser or in the event of a 1 38 nonguaranteed price agreement, respectively. This 1 39 provision does not affect the purchaser's right to a 1 40 total refund of principal and interest or income in 1 41 the event of nonperformance. 1 42 c. If an agreement pursuant to this section is to 1 43 be paid in installment payments, the seller shall 1 44 deposit eighty percent of each payment in trust until 1 45 the full amount to be trusted has been deposited. If 1 46 the agreement is financed with or sold to a financial 1 47 institution, then the agreement shall be considered 1 48 paid in full and the deposit requirements of this 1 49 section shall be satisfied within fifteen days after 1 50 the close of the month of receipt of the funds from 2 1 the financial institution. 2 2 d. This section does not apply to payments for 2 3 merchandise delivered to the purchaser. Except for 2 4 caskets and other types of inner burial containers or 2 5 concrete burial vaults sold after July 1, 1995, 2 6 delivery includes storage in a warehouse under the 2 7 control of the seller or any other warehouse or 2 8 storage facility approved by the commissioner when a 2 9 receipt of ownership in the name of the purchaser is 2 10 delivered to the purchaser, the merchandise is insured 2 11 against loss, the merchandise is protected against 2 12 damage, title has been transferred to the purchaser, 2 13 the merchandise is appropriately identified and 2 14 described in a manner that it can be distinguished 2 15 from other similar items of merchandise, the method of 2 16 storage allows for visual audits of the merchandise, 2 17 and the annual reporting requirements of section 2 18 523A.2, subsection 1, are satisfied. 2 19 2. An agreement may be funded by insurance 2 20 proceeds derived from a policy issued by an insurance 2 21 company authorized to conduct business in this state. 2 22 Such funding may be in lieu of a trust fund if the 2 23 payments are made directly to the insurance company by 2 24 the purchaser of the agreement. 2 25 3. Except for payments received by the seller for 2 26 merchandise delivered to the purchaser pursuant to 2 27 subsection 1, paragraph "d", and for sellers who have 2 28 filed a surety bond in lieu of the trust fund 2 29 requirements, a seller that does not have insurance 2 30 coverage protecting against the loss of amounts 2 31 received from consumers that are not placed in trust 2 32 pursuant to this section shall not do any of the 2 33 following: 2 34 a. Commingle trust funds with any other funds of 2 35 the seller. 2 36 b. Accept cash payments. 2 37 c. Accept payments by check or in any other 2 38 manner, unless such payments are made payable directly 2 39 to an escrow or trust account maintained at a 2 40 financial institution. 2 41 Sec. . Section 523A.2, subsection 1, paragraph 2 42 c, Code Supplement 1995, is amended by adding the 2 43 following new subparagraph: 2 44 NEW SUBPARAGRAPH. (2A) An audited financial 2 45 statement for the seller's most recent completed 2 46 fiscal year prepared by an independent accountant or 2 47 auditor in accordance with generally accepted 2 48 accounting principles. The financial statement shall 2 49 include a copy of the seller's balance sheet as of a 2 50 date within one hundred twenty days of the date of the 3 1 filing, a profit and loss statement, and a statement 3 2 of change in financial position for the most recent 3 3 fiscal year of the seller." 3 4 #2. Page 4, by inserting after line 23 the 3 5 following: 3 6 "Sec. . Section 523E.1, Code Supplement 1995, 3 7 is amended by adding the following new subsection: 3 8 NEW SUBSECTION. 7. Except for payments received 3 9 by the seller for merchandise delivered to the 3 10 purchaser pursuant to subsection 6, and for sellers 3 11 who have filed a surety bond in lieu of the trust fund 3 12 requirements, a seller that does not have insurance 3 13 coverage protecting against the loss of amounts 3 14 received from consumers that are not placed in trust 3 15 pursuant to this section shall not do any of the 3 16 following: 3 17 a. Commingle trust funds with any other funds of 3 18 the seller. 3 19 b. Accept cash payments. 3 20 c. Accept payments by check or in any other 3 21 manner, unless such payments are made payable directly 3 22 to an escrow or trust account maintained at a 3 23 financial institution. 3 24 Sec. . Section 523E.2, subsection 1, paragraph 3 25 c, Code Supplement 1995, is amended by adding the 3 26 following new subparagraph: 3 27 NEW SUBPARAGRAPH. (2A) An audited financial 3 28 statement for the seller's most recent completed 3 29 fiscal year prepared by an independent accountant or 3 30 auditor in accordance with generally accepted 3 31 accounting principles. The financial statement shall 3 32 include a copy of the seller's balance sheet as of a 3 33 date within one hundred twenty days of the date of the 3 34 filing, a profit and loss statement, and a statement 3 35 of change in financial position for the most recent 3 36 fiscal year of the seller." 3 37 #3. By renumbering as necessary. 3 38 3 39 3 40 3 41 MIKE CONNOLLY 3 42 SF 2466.701 76 3 43 mj/sc
Text: S05708 Text: S05710 Text: S05700 - S05799 Text: S Index Bills and Amendments: General Index Bill History: General Index
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