(760 ILCS 100/4) (from Ch. 21, par. 64.4)
Sec. 4.
Care funds; deposits; investments.
Whenever a cemetery authority owning, operating, controlling or
managing a privately operated cemetery accepts care funds, either in
connection with the sale or giving away at an imputed value of an
interment right, entombment right or inurnment right, or in pursuance
of a contract, or whenever, as a condition precedent to the purchase or
acceptance of an interment right, entombment right or inurnment right,
such cemetery authority requires the establishment of a care fund or a
deposit in an already existing care fund, then such cemetery authority
shall execute and deliver to the person from whom received an instrument in
writing which shall specifically state: (a) the nature and extent of the
care to be furnished, and (b) that such care shall be furnished only in so
far as the net income derived from the amount deposited in trust will
permit (the income from the amount so deposited, less necessary
expenditures of administering the trust, shall be deemed the net income),
and (c) that not less than the following amounts will be set aside and
deposited in trust:
1. For interment rights, $1 per square foot of the |
Such setting aside and deposit shall be made by such cemetery authority
not later than 30 days after the close of the month in which
the cemetery authority gave away for an imputed value or
received the final payment on the purchase price of interment rights,
entombment rights, or inurnment rights, or received the final payment
for the general or special care of a lot,
grave, crypt or niche or of a family mausoleum, memorial, marker or
monument; and such amounts shall be held by
the trustee of the care funds of such cemetery authority in trust in
perpetuity for the specific purposes stated in said written instrument.
For all care funds received by a cemetery authority, except for care
funds received by a cemetery authority pursuant to a specific gift, grant,
contribution, payment, legacy, or contract that are subject to investment
restrictions more restrictive than the investment provisions set forth in
this Act, and except for care funds otherwise subject to a trust agreement
executed by a person or persons responsible for transferring the specific
gift, grant, contribution, payment, or legacy to the cemetery authority
that contains investment restrictions more restrictive than the investment
provisions set forth in this Act, the cemetery authority may, without the
necessity of having to obtain prior approval from any court in this State,
designate a new trustee in accordance with this Act and invest the care
funds in accordance with this Section, notwithstanding any contrary
limitation contained in the trust agreement.
Any such cemetery authority engaged in selling or giving away at an
imputed value interment rights, entombment rights or inurnment rights, in
conjunction with the selling or giving away at an imputed value any other
merchandise or services not covered by this Act, shall be prohibited from
increasing the sales price or imputed value of those items not requiring a
care fund deposit under this Act with the purpose of allocating a lesser
sales price or imputed value to items that require a care fund deposit.
In the event any sale that would require a deposit to such cemetery
authority's care fund is made by a cemetery authority on an installment
basis, and the installment contract is factored, discounted, or sold to a
third party, the cemetery authority shall deposit the amount due to
the care fund within 30 days after the close of the month in which the
installment contract was factored, discounted, or sold. If, subsequent to
such deposit, the purchaser defaults on the contract such that no care fund
deposit on that contract would have been required, the cemetery authority may
apply the amount deposited as a credit against future required deposits.
The trust authorized by this Section shall be a single purpose trust
fund. In the event of the seller's bankruptcy, insolvency, or assignment
for the benefit of creditors, or an adverse judgment, the trust funds shall
not be available to any creditor as assets of the cemetery authority or to pay
any expenses of any bankruptcy or similar proceeding, but shall be retained
intact to provide for the future maintenance of the cemetery. Except in an
action by the Comptroller to revoke a license issued pursuant
to this Act and for creation of a receivership as provided in this Act, the
trust shall not be subject to judgment, execution, garnishment, attachment,
or other seizure by process in bankruptcy or otherwise, nor to sale, pledge,
mortgage, or other alienation, and shall not be assignable except as
approved by the Comptroller. The changes made by this amendatory Act of
the 91st General Assembly are intended to clarify existing law regarding the
inability of licensees to pledge the trust.
(Source: P.A. 91-7, eff. 6-1-99 .)
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