Text: SF00170 Text: SF00172 Text: SF00100 - SF00199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 523A.1, Code 1995, is amended to read 1 2 as follows: 1 3 523A.1 TRUST FUND ESTABLISHED. 1 4 1. a.WheneverExcept as provided in paragraph "b", 1 5 whenever an agreement is made by any person, firm, or 1 6 corporation to furnish, upon the future death of a person 1 7 named or implied in the agreement, funeral services or funeral 1 8 merchandise, a minimum of eighty percent of all payments made 1 9 under the agreement shall be and remain trust funds until 1 10 occurrence of the death of the person for whose benefit the 1 11 funds were paid, unless the funds are sooner released to the 1 12 person making the payment by mutual consent of the parties. 1 13 Payments otherwise subject to this section are not exempt 1 14 merely because they are held in certificates of deposit. 1 15 b. On or after July 1, 1995, whenever an agreement is made 1 16 pursuant to paragraph "a", one hundred percent of all payments 1 17 made under the agreement shall be and remain trust funds until 1 18 occurrence of the death of the person for whose benefit the 1 19 funds were paid, unless the funds are sooner released to the 1 20 person making the payment by mutual consent of the parties. 1 21 Payments otherwise subject to this section are not exempt 1 22 merely because they are held in certificates of deposit. 1 23 2. Interest or income earned on amounts deposited in trust 1 24 under this section shall remain in trust under the same terms 1 25 and conditions as the payments made under the agreement, 1 26 except that the seller may withdraw so much of the interest or 1 27 income as represents the difference between the amount needed 1 28 to 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 not to 1 31 exceed fifty percent of the total interest or income, on a 1 32 calendar year basis. The early withdrawal of interest or 1 33 income pursuant to this provision does not affect the 1 34 purchaser's right to the full refund or credit of such 1 35 interest or income in the event the payments and interest in 2 1 trust are released to the purchaser or in the event of a 2 2 nonguaranteed price agreement, respectively. This provision 2 3 does not affect the purchaser's right to a total refund of 2 4 principal and interest or income in the event of 2 5 nonperformance. 2 6 3. a.IfExcept as provided in paragraph "b", if an 2 7 agreement pursuant to this section is to be paid in 2 8 installment payments, the seller shall deposit eighty percent 2 9 of each payment in trust until the full amount to be trusted 2 10 has been deposited. If the agreement is financed with or sold 2 11 to a financial institution, then the agreement shall be 2 12 considered paid in full and the deposit requirements of this 2 13 section shall be satisfied within fifteen days after the close 2 14 of the month of receipt of the funds from the financial 2 15 institution. 2 16 b. On or after July 1, 1995, if an agreement pursuant to 2 17 this section is to be paid in installment payments, the seller 2 18 shall deposit one hundred percent of each payment in trust. 2 19 If the agreement is financed with or sold to a financial 2 20 institution, then the agreement shall be considered paid in 2 21 full and the deposit requirements of this section shall be 2 22 satisfied within fifteen days after the close of the month of 2 23 receipt of the funds from the financial institution. 2 24 4. This section does not apply to payments for merchandise 2 25 delivered to the purchaser. Delivery includes storage in a 2 26 warehouse under the control of the seller or any other 2 27 warehouse or storage facility approved by the commissioner 2 28 when a receipt of ownership in the name of the purchaser is 2 29 delivered to the purchaser, the merchandise is insured against 2 30 loss, the merchandise is protected against damage, title has 2 31 been transferred to the purchaser, the merchandise is 2 32 appropriately identified and described in a manner that it can 2 33 be distinguished from other similar items of merchandise, the 2 34 method of storage allows for visual audits of the merchandise, 2 35 and the annual reporting requirements of section 523A.2, 3 1 subsection 1, are satisfied. 3 2 Sec. 2. Section 523A.19, subsection 1, paragraph b, Code 3 3 1995, is amended to read as follows: 3 4 b. Has utilized trust funds for personal or business 3 5 purposes in a manner inconsistent with this chapter and the 3 6 amount of funds currently held in trust is less thaneighty3 7 the following: 3 8 (1) Eighty percent of all payments made underthe3 9agreementsan agreement referred to in section 523A.1 which is 3 10 entered into prior to July 1, 1995. 3 11 (2) One hundred percent of all payments made under an 3 12 agreement referred to in section 523A.1 which is entered into 3 13 on or after July 1, 1995. 3 14 EXPLANATION 3 15 This bill increases the amount which a person, who agrees 3 16 to furnish funeral services or funeral merchandise upon the 3 17 future death of a person, must deposit in trust from a minimum 3 18 of 80 percent of all payments made under the agreement to 100 3 19 percent of all such payments for agreements entered into on or 3 20 after July 1, 1995. 3 21 LSB 1396SS 76 3 22 mj/jw/5
Text: SF00170 Text: SF00172 Text: SF00100 - SF00199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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