House Journal: Page 1327: Monday, April 23, 2001
42 ceases doing business and the seller's obligation to
43 provide merchandise or services has not been assumed
44 by another establishment holding a current
45 establishment permit, all trust funds, including
46 accrued interest or income, shall be repaid to the
47 purchaser within one hundred twenty days following the
48 seller's cessation of business or, in the event of
49 circumstances where a payment is not possible within
50 one hundred twenty days, as soon as is reasonably
Page 7
1 practicable.
2 Sec. . NEW SECTION. 523A.202 TRUST FUND
3 DEPOSIT REQUIREMENTS.
4 1. All funds held in trust pursuant to section
5 523A.201 shall be deposited in a financial
6 institution, within fifteen days after the close of
7 the month a seller receives the funds. The financial
8 institution shall hold the funds for the designated
9 beneficiary until released.
10 2. All funds required to be deposited by the
11 purchaser for a purpose described in section 523A.201
12 shall be deposited consistent with one of the
13 following methods:
14 a. The payments shall be deposited directly into
15 an interest-bearing burial account in the purchaser's
16 name.
17 b. The purchaser shall deposit payments directly
18 into a separate trust account in the purchaser's name.
19 The account may be made payable to the seller upon the
20 death of the purchaser or the designated beneficiary,
21 provided that, until death, the purchaser retains the
22 exclusive power to hold, manage, pledge, and invest
23 the trust account funds and may revoke the trust and
24 withdraw the funds, in whole or in part, at any time
25 during the term of the agreement.
26 c. The purchaser or the seller shall deposit
27 payments directly into a separate trust account in the
28 name of the purchaser, as trustee, for the named
29 beneficiary, to be held, invested, and administered as
30 a trust account for the benefit and protection of the
31 beneficiary. The depositor shall notify the financial
32 institution of the existence and terms of the trust,
33 including at a minimum, the name of each party to the
34 agreement, the name and address of the trustee, and
35 the name and address of the beneficiary. The account
36 may be made payable to the seller upon the
37 beneficiary's death.
38 d. The payments shall be deposited in the name of
39 the trustee, as trustee, under the terms of a master
40 trust agreement and the trustee may invest, reinvest,
© 2001 Cornell College and
League of Women Voters of Iowa
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