46-1-311 - Deficiency in improvement care fund Failure to file reports Effect Orders.
46-1-311. Deficiency in improvement care fund Failure to file reports Effect Orders.
(a) The commissioner may, upon determining that a deficiency exists in the improvement care fund or that a cemetery company has willfully failed to file annual reports, as provided in § 46-1-302, of any cemetery or separate geographical site of a cemetery as required by this chapter, order the correction of the deficiency or failure to file, upon the terms and conditions that the commissioner determines to be appropriate.
(b) While the owner or operator of the cemetery or separate geographical location is in compliance with the terms and conditions of the order, the provisions of § 46-1-205 relative to the payment of dividends, salaries or compensation shall be suspended.
(c) Upon failure of the owner or operator of the cemetery or separate geographical site of a cemetery to correct the deficiency or failure to file as ordered, the commissioner may issue a conditional suspension of the certificate of registration required by § 46-1-103.
(1) The conditional suspension shall be accompanied by an order to correct the deficiency within a stated time, not less than thirty (30) days after issuance of the order.
(2) A conditional suspension of the registration certificate shall not have the effect of interrupting the operation of the cemetery company. It is the purpose of this chapter to provide for an orderly transition from operation by the owner to operation by a receiver, in cases where trust fund deficiencies cannot otherwise be corrected.
(3) If the deficiency is corrected within the time limit stated, further action on the suspension or receivership shall be terminated; provided, that the termination of a suspension shall not be construed to prohibit further actions toward suspension or receivership if a deficiency is determined to exist at a later time.
(d) The commissioner is authorized, upon determining that a substantial deficiency exists in the improvement care fund, to order the cemetery company to correct the deficiency and also to pay to the improvement care fund an amount equal to ten percent (10%) of the deficiency.
[Acts 1976, ch. 773, § 9; T.C.A., §§ 46-222, 46-2-122; Acts 1995, ch. 485, § 7; T.C.A, § 46-2-311; Acts 2006, ch. 1012, § 4.]