54.1-2325 - Deposit in preneed trust required upon sale of property or services not to be delivered within 120 days.
§ 54.1-2325. Deposit in preneed trust required upon sale of property orservices not to be delivered within 120 days.
A. Each cemetery company shall deposit into a trust fund at least fortypercent of the receipts from the sale of property or services purchasedpursuant to a preneed burial contract, when the delivery thereof will bedelayed more than 120 days from the initial payment on said contract. Thecemetery company shall establish a special trust fund in a Virginia trustcompany or trust subsidiary or a federally insured bank or savingsinstitution doing business in the Commonwealth. The trust shall bear thelegend "Preneed Trust Account." Deposits are required to be made by thecemetery company within thirty days after the close of the month in whichsaid receipts are paid to it.
B. If the purchaser's payment is made on an installment or deferred paymentbasis, the seller shall have the option of paying each payment received intothe preneed trust account.
(1998, cc. 708, 721.)