House Journal: Page 1326: Monday, April 23, 2001
43 or sold to a financial institution, the purchase
44 agreement shall be considered paid in full and the
45 trust requirements shall be satisfied within fifteen
46 days after the close of the month in which the seller
47 receives funds from the financial institution.
48 4. A seller shall not invade the trust principal
49 for any purpose.
50 5. A seller who lacks insurance coverage which
Page 6
1 protects against the loss of purchaser payments not
2 placed in trust within the time period required by
3 this section and section 523A.202 shall not commingle
4 these payments with any other seller funds. A seller
5 who lacks insurance coverage may use one or more of
6 the following methods to dispose of these payments:
7 a. Deposit purchaser funds into an escrow account
8 until the required amount has been deposited into a
9 trust account at a financial institution.
10 b. Make a prior delivery or warehouse cemetery or
11 funeral merchandise or a combination thereof as
12 provided by this chapter.
13 c. Make a prior filing of a surety bond in lieu of
14 establishing a trust fund as required by this section.
15 d. Make a simultaneous, same-day deposit of the
16 purchaser's payments into the seller's bank account
17 and the required amount into the seller's trust fund.
18 6. Payments otherwise subject to this section are
19 not exempt merely because they are held in
20 certificates of deposit.
21 7. Commingling of trust funds with other funds of
22 the seller is prohibited.
23 8. Interest or income earned on amounts deposited
24 in trust shall remain in trust under the same terms
25 and conditions as payments made under the purchase
26 agreement, except that the seller may withdraw so much
27 of the interest or income as represents the difference
28 between the amount needed to adjust the trust funds
29 for inflation as set by the commissioner based on the
30 consumer price index and the interest or income earned
31 during the preceding year not to exceed fifty percent
32 of the total interest or income on a calendar-year
33 basis. The early withdrawal of interest or income
34 under this provision does not affect the purchaser's
35 right to a credit of such interest or income in the
36 event of a nonguaranteed price agreement,
37 cancellation, or nonperformance by the seller.
38 9. The commissioner may require amendments to a
39 trust agreement not in accord with the provisions of
40 this chapter.
41 10. If a seller voluntarily or involuntarily
© 2001 Cornell College and
League of Women Voters of Iowa
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