Full Text of HB3236 96th General Assembly
HB3236ham001 96TH GENERAL ASSEMBLY
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Rep. Dan Brady
Filed: 3/18/2009
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| AMENDMENT TO HOUSE BILL 3236
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| AMENDMENT NO. ______. Amend House Bill 3236 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Illinois Funeral or Burial Funds Act is | 5 |
| amended by changing Section 1a and by adding Section 1c as | 6 |
| follows:
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| (225 ILCS 45/1a) (from Ch. 111 1/2, par. 73.101a)
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| Sec. 1a.
For the purposes of this Act, the following terms | 9 |
| shall have
the meanings specified, unless the context clearly | 10 |
| requires another meaning:
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| "Beneficiary" means the person specified in the pre-need | 12 |
| contract upon
whose death funeral services or merchandise shall | 13 |
| be provided or delivered.
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| "Licensee" means a seller of a pre-need contract who has
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| been licensed by
the Comptroller under this Act.
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| "Outer burial container" means any container made of |
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| concrete,
steel, wood, fiberglass or similar material, used | 2 |
| solely at the interment
site, and designed and used exclusively | 3 |
| to surround or enclose a separate
casket and to support the | 4 |
| earth above such casket, commonly known as a
burial vault, | 5 |
| grave box or grave liner, but not including a lawn
crypt as | 6 |
| defined in the Illinois Pre-need Cemetery Sales Act.
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| "Parent company" means a corporation owning more than 12 | 8 |
| cemeteries or
funeral homes in more than one state.
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| "Person" means any person, partnership, association, | 10 |
| corporation, or
other entity.
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| "Pre-need contract" means any agreement or contract, or any | 12 |
| series or
combination of agreements or contracts, whether | 13 |
| funded by trust deposits or
life insurance policies or | 14 |
| annuities, which has for a purpose the furnishing
or | 15 |
| performance of funeral services or the furnishing or delivery | 16 |
| of any
personal property, merchandise, or services of any | 17 |
| nature in connection with
the final disposition of a dead human | 18 |
| body. Nothing in this Act is intended to
regulate the content | 19 |
| of a life insurance policy or a tax-deferred annuity.
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| "Provider" means a person who is obligated for furnishing | 21 |
| or performing
funeral services or the furnishing or delivery of | 22 |
| any personal property,
merchandise, or services of any nature | 23 |
| in connection with the final disposition
of a dead human body.
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| "Purchaser" means the person who originally paid the money | 25 |
| under or in
connection with a pre-need contract.
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| "Sales proceeds" means the entire amount paid to a seller, |
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| exclusive
of sales taxes paid by the seller, finance charges | 2 |
| paid by the purchaser, and
credit life, accident or disability | 3 |
| insurance premiums, upon any agreement or
contract, or series | 4 |
| or combination of agreements or contracts, for the purpose
of | 5 |
| performing funeral services or furnishing personal property, | 6 |
| merchandise, or
services of any nature in connection with the | 7 |
| final disposition of a dead human
body, including, but not | 8 |
| limited to, the retail price paid for such services
and | 9 |
| personal property and merchandise.
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| "Purchase price" means sales proceeds less finance charges | 11 |
| on
retail
installment contracts.
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| "Seller" means the person who sells or
offers to sell the | 13 |
| pre-need contract
to a purchaser, whether funded by a trust | 14 |
| agreement, life insurance policy,
or tax-deferred annuity , or, | 15 |
| in the case of a non-guaranteed contract, other means agreed to | 16 |
| by the purchaser and seller in the pre-need contract. Pre-need | 17 |
| contracts entered into with a funeral establishment, as defined | 18 |
| in the Funeral Directors and Embalmers Licensing Code, may only | 19 |
| be offered or sold to a purchaser by a person licensed as a | 20 |
| funeral director or a funeral director and embalmer under the | 21 |
| Funeral Directors and Embalmers Licensing Code .
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| "Trustee" means a person authorized to hold funds under | 23 |
| this Act.
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| (Source: P.A. 92-419, eff. 1-1-02.)
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| (225 ILCS 45/1c new) |
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| Sec. 1c. Disclosures; options. Beginning on the effective | 2 |
| date of this amendatory Act of the 96th General Assembly, | 3 |
| before a seller and purchaser enter into a pre-need contract, | 4 |
| the seller must disclose and fully explain that the purchaser | 5 |
| may fund a non-guaranteed pre-need contract by choosing one of | 6 |
| the following options: | 7 |
| (1) depositing funds into a local banking institution | 8 |
| of the purchaser's choosing; | 9 |
| (2) depositing funds into a trust program operated by | 10 |
| the seller; or | 11 |
| (3) other means offered by the seller. | 12 |
| The purchaser shall then choose one of those options and | 13 |
| the seller shall take all steps necessary to effectuate the | 14 |
| purchaser's funding selection. | 15 |
| Section 10. The Illinois Pre-Need Cemetery Sales Act is | 16 |
| amended by changing Sections 4 and 17 and by adding Section | 17 |
| 15.5 as follows:
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| (815 ILCS 390/4) (from Ch. 21, par. 204)
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| Sec. 4. Definitions. As used in this Act, the following | 20 |
| terms shall
have the meaning specified:
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| (A) "Pre-need sales contract" or "Pre-need sales" means any
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| agreement or contract or series or combination of agreements or | 23 |
| contracts which
have for a purpose the sale of cemetery | 24 |
| merchandise, cemetery services or
undeveloped interment, |
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| entombment or inurnment spaces where the terms of
such sale | 2 |
| require payment or payments to be made at a currently | 3 |
| determinable
time and where the merchandise, services or | 4 |
| completed spaces are to be
provided more than 120 days | 5 |
| following the initial payment on the account.
An agreement or | 6 |
| contract for a memorial, marker, or monument shall not be
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| deemed a "pre-need sales contract" or a "pre-need sale" if the | 8 |
| memorial,
marker, or monument is delivered within 180 days | 9 |
| following initial payment on
the account and work thereon | 10 |
| commences a reasonably short time after initial
payment on the | 11 |
| account.
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| (B) "Delivery" occurs when:
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| (1) Physical possession of
the merchandise is | 14 |
| transferred or
the
easement for burial rights in a | 15 |
| completed space is executed, delivered and
transferred to | 16 |
| the buyer; or
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| (2) Following authorization by a purchaser under a | 18 |
| pre-need sales
contract, title to the merchandise has been | 19 |
| transferred to the
buyer and the
merchandise has been paid | 20 |
| for and is in the possession of the seller who
has placed | 21 |
| it, until needed, at the site of its ultimate use;
or
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| (3) Following authorization by a purchaser under a | 23 |
| pre-need
sales
contract, the merchandise has been | 24 |
| permanently identified
with the
name of the buyer or the | 25 |
| beneficiary and delivered to a licensed and bonded
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| warehouse and both title to the merchandise and a warehouse |
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| receipt have
been delivered to the purchaser or beneficiary | 2 |
| and a copy of the warehouse
receipt has been delivered to | 3 |
| the licensee for retention in its files; except
that in the | 4 |
| case of
outer burial containers, the use of a licensed and | 5 |
| bonded warehouse as set
forth in this paragraph shall not | 6 |
| constitute delivery for purposes of this
Act. Nothing | 7 |
| herein shall prevent a seller from perfecting a security | 8 |
| interest
in accordance with the Uniform Commercial Code on | 9 |
| any merchandise covered under
this Act.
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| All warehouse facilities to which sellers deliver
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| merchandise pursuant to this Act shall:
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| (i) be either located in the State of Illinois or | 13 |
| qualify as a
foreign warehouse facility as defined | 14 |
| herein;
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| (ii) submit to the Comptroller not less than | 16 |
| annually, by March 1 of
each year, a report of all | 17 |
| cemetery merchandise stored by each licensee
under | 18 |
| this Act which is in storage on the date of the report;
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| (iii) permit the Comptroller or his designee at any | 20 |
| time to examine
stored merchandise and to examine any | 21 |
| documents pertaining thereto;
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| (iv) submit evidence satisfactory to the | 23 |
| Comptroller that all
merchandise stored by said | 24 |
| warehouse for licensees under this Act is
insured for | 25 |
| casualty or other loss normally assumed by a bailee for | 26 |
| hire;
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| (v) demonstrate to the Comptroller that the | 2 |
| warehouse has procured and
is maintaining a | 3 |
| performance bond in the form, content and amount
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| sufficient to unconditionally guarantee to the | 5 |
| purchaser or beneficiary the
prompt shipment of the | 6 |
| cemetery merchandise.
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| (C) "Cemetery merchandise" means items of personal | 8 |
| property normally
sold by a cemetery authority not covered | 9 |
| under the Illinois Funeral or Burial
Funds Act, including but | 10 |
| not limited to:
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| (1) memorials,
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| (2) markers,
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| (3) monuments,
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| (4) foundations, and
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| (5) outer burial containers.
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| (D) "Undeveloped interment, entombment or inurnment | 17 |
| spaces" or
"undeveloped spaces" means any space to be used for | 18 |
| the reception of human
remains that is not completely and | 19 |
| totally constructed at the time of
initial payment therefor in | 20 |
| a:
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| (1) lawn crypt,
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| (2) mausoleum,
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| (3) garden crypt,
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| (4) columbarium, or
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| (5) cemetery section.
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| (E) "Cemetery services" means those services customarily |
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| performed
by cemetery or crematory personnel in connection with | 2 |
| the interment,
entombment, inurnment or cremation of a dead | 3 |
| human body.
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| (F) "Cemetery section" means a grouping of spaces intended | 5 |
| to be
developed simultaneously for the purpose of interring | 6 |
| human remains.
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| (G) "Columbarium" means an arrangement of niches that may | 8 |
| be an entire
building, a complete room, a series of special | 9 |
| indoor alcoves, a bank along
a corridor or part of an outdoor | 10 |
| garden setting that is constructed of
permanent material such | 11 |
| as bronze, marble, brick, stone or concrete for the
inurnment | 12 |
| of human remains.
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| (H) "Lawn crypt" means a permanent underground crypt | 14 |
| usually constructed
of reinforced concrete or similar material | 15 |
| installed in multiple units for
the entombment of human | 16 |
| remains.
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| (I) "Mausoleum" or "garden crypt" means a grouping of | 18 |
| spaces constructed
of reinforced concrete or similar material | 19 |
| constructed or assembled above
the ground for entombing human | 20 |
| remains.
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| (J) "Memorials, markers and monuments" means the object | 22 |
| usually comprised
of a permanent material such as granite or | 23 |
| bronze used to identify and
memorialize the deceased.
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| (K) "Foundations" means those items used to affix or | 25 |
| support a memorial
or monument to the ground in connection with | 26 |
| the installation of a memorial,
marker or monument.
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| (L) "Person" means an individual, corporation, | 2 |
| partnership, joint
venture, business trust, voluntary | 3 |
| organization or any other form of entity.
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| (M) "Seller" means
any person selling or offering for sale | 5 |
| cemetery
merchandise, cemetery services or undeveloped | 6 |
| interment, entombment, or
inurnment spaces in accordance with a | 7 |
| pre-need sales contract. The seller must be licensed in | 8 |
| accordance with the requirements of Section 8 of this Act. | 9 |
| Pre-need sales contracts offered by anyone other than a | 10 |
| licensee under Section 8 of this Act may only be executed by | 11 |
| the licensee, whose signature authority may not be delegated to | 12 |
| anyone not licensed under the Act for purpose of executing | 13 |
| pre-need sales contracts.
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| (N) "Religious cemetery" means a cemetery owned, operated, | 15 |
| controlled
or managed by any recognized church, religious | 16 |
| society, association or
denomination or by any cemetery | 17 |
| authority or any corporation administering,
or through which is | 18 |
| administered, the temporalities of any recognized
church, | 19 |
| religious society, association or denomination.
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| (O) "Municipal cemetery" means a cemetery owned, operated, | 21 |
| controlled or
managed by any city, village, incorporated town, | 22 |
| township, county or other
municipal corporation, political | 23 |
| subdivision, or instrumentality thereof
authorized by law to | 24 |
| own, operate or manage a cemetery.
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| (O-1) "Outer burial container" means a container made of | 26 |
| concrete, steel,
wood, fiberglass, or similar material, used |
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| solely at the interment site, and
designed and used exclusively | 2 |
| to surround or enclose a separate casket and to
support the | 3 |
| earth above such casket, commonly known as a burial vault, | 4 |
| grave
box, or grave liner, but not including a lawn crypt.
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| (P) "Sales price" means the gross amount paid by a
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| purchaser on a
pre-need sales contract for cemetery | 7 |
| merchandise, cemetery services or
undeveloped interment, | 8 |
| entombment or inurnment spaces, excluding sales
taxes, credit | 9 |
| life insurance premiums, finance charges and Cemetery Care
Act | 10 |
| contributions.
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| (Q) (Blank).
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| (R) "Provider" means a person who is responsible for
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| performing cemetery services or furnishing cemetery
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| merchandise, interment spaces, entombment spaces, or
inurnment | 15 |
| spaces under a pre-need sales contract.
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| (S) "Purchaser" or "buyer" means the person who
originally | 17 |
| paid the money under or in connection with a
pre-need sales | 18 |
| contract.
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| (T) "Parent company" means a corporation owning more than | 20 |
| 12 cemeteries or
funeral homes in more than one state.
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| (U) "Foreign warehouse facility" means a warehouse | 22 |
| facility
now or
hereafter located in any state or territory of | 23 |
| the United States, including
the District of Columbia, other | 24 |
| than the State of Illinois.
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| A foreign warehouse facility shall be deemed to have | 26 |
| appointed the
Comptroller to be its true and lawful attorney |
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| upon whom may be served all
legal process in any action or | 2 |
| proceeding against it relating to or growing
out of this Act, | 3 |
| and the acceptance of the delivery of stored merchandise
under | 4 |
| this Act shall be signification of its agreement that any such
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| process against it which is so served, shall be of the same | 6 |
| legal force and
validity as though served upon it personally.
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| Service of such process shall be made by delivering to and | 8 |
| leaving with
the Comptroller, or any agent having charge of the | 9 |
| Comptroller's Department
of Cemetery and Burial Trusts, a copy | 10 |
| of such process and such service
shall be sufficient service | 11 |
| upon such foreign warehouse facility if notice
of such service | 12 |
| and a copy of the process are, within 10 days thereafter,
sent | 13 |
| by registered mail by the plaintiff to the foreign warehouse | 14 |
| facility
at its principal office and the plaintiff's affidavit | 15 |
| of compliance
herewith is appended to the summons. The | 16 |
| Comptroller shall keep a record
of all process served upon him | 17 |
| under this Section and shall record therein
the time of such | 18 |
| service.
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| (Source: P.A. 91-7, eff. 1-1-00; 91-357, eff. 7-29-99; 92-16, | 20 |
| eff. 6-28-01;
92-419, eff. 1-1-02.)
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| (815 ILCS 390/15.5 new) | 22 |
| Sec. 15.5. Disclosures; options. Beginning on the | 23 |
| effective date of this amendatory Act of the 96th General | 24 |
| Assembly, before a seller and purchaser enter into a pre-need | 25 |
| sales contract, the seller must disclose and fully explain that |
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09600HB3236ham001 |
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LRB096 08285 KTG 23986 a |
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| the purchaser may fund a non-guaranteed pre-need sales contract | 2 |
| by choosing one of the following options: | 3 |
| (1) depositing funds into a local banking institution | 4 |
| of the purchaser's choosing; | 5 |
| (2) depositing funds into a trust program operated by | 6 |
| the seller; or | 7 |
| (3) other means offered by the seller. | 8 |
| The purchaser shall then choose one of those options and | 9 |
| the seller shall take all steps necessary to effectuate the | 10 |
| purchaser's funding selection.
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| (815 ILCS 390/17) (from Ch. 21, par. 217)
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| Sec. 17.
(a) The principal and undistributed income of the | 13 |
| trust created
pursuant to Section 15 or Section 15.5 of this | 14 |
| Act shall be paid to the seller if:
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| (1) the seller certifies by sworn affidavit to the trustee | 16 |
| that the purchaser
or the beneficiary named in the pre-need | 17 |
| contract has deceased and that
seller has fully delivered or | 18 |
| installed all items included in the pre-need
contract and fully | 19 |
| performed all pre-need cemetery services he is required to
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| perform under the pre-need contract; or
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| (2) the seller certifies by sworn affidavit to the trustee | 22 |
| that seller
has made full delivery, as defined herein.
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| (Source: P.A. 84-239.)
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law.".
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