ORS 97.941
Prearrangement or preconstruction trust fund deposits


(1)

Upon receiving anything of value under a prearrangement sales contract or preconstruction sales contract, the certified provider who sold the contract shall deposit the following amounts into one or more trust funds maintained pursuant to ORS 97.923 (Definitions for ORS 97.923 to 97.949) to 97.949 (Notification by director to appropriate federal, state or local law enforcement officer of violation of ORS 97.923 to 97.949), 97.992 (Penalties for ORS 97.937), 97.994 (Penalties for ORS 97.931, 97.933, 97.941 and 97.943) and 692.180 (Grounds for revocation, suspension or refusal to issue or renew licenses or certificates):

(a)

If the amount received is in payment of a guaranteed prearrangement sales contract or guaranteed preconstruction sales contract, 90 percent of the amount received. The certified provider who sold the contract is entitled to receive the remaining 10 percent.

(b)

If the amount received is in payment of a nonguaranteed prearrangement sales contract or nonguaranteed preconstruction sales contract, 100 percent of the amount received.

(2)

A certified provider shall pay all trust funds required by ORS 97.923 (Definitions for ORS 97.923 to 97.949) to 97.949 (Notification by director to appropriate federal, state or local law enforcement officer of violation of ORS 97.923 to 97.949), 97.992 (Penalties for ORS 97.937), 97.994 (Penalties for ORS 97.931, 97.933, 97.941 and 97.943) and 692.180 (Grounds for revocation, suspension or refusal to issue or renew licenses or certificates) directly to a master trustee or depository within five business days after the certified provider receives the funds from the purchaser.

(3)

Intentionally left blank —Ed.

(a)

If a certified provider places trust funds in a depository, the funds may be invested only in:

(A)

Certificates of deposit;

(B)

United States Treasury bills;

(C)

Issues of United States government agencies;

(D)

Guaranteed investment contracts; or

(E)

Banker’s acceptances or corporate bonds rated A or better by Standard & Poor’s Corporation or Moody’s Investors Service.

(b)

Prearrangement sales contract trust fund and preconstruction sales contract trust fund accounts must be in the name of the certified provider who sold the contract under ORS 97.923 (Definitions for ORS 97.923 to 97.949) to 97.949 (Notification by director to appropriate federal, state or local law enforcement officer of violation of ORS 97.923 to 97.949), 97.992 (Penalties for ORS 97.937), 97.994 (Penalties for ORS 97.931, 97.933, 97.941 and 97.943) and 692.180 (Grounds for revocation, suspension or refusal to issue or renew licenses or certificates).

(4)

A certified provider shall identify funds deposited in the trust fund account in the records of the certified provider by the name of the purchaser and beneficiary. The certified provider shall maintain records that specify the allocation of all earnings to each prearrangement sales contract or preconstruction sales contract. Nothing prohibits the certified provider from directing a master trustee or a depository to commingle the deposits in a trust fund account for purposes of managing and investing the funds. A joint trust fund account must be identified by the name of the certified provider.

(5)

When a prearrangement sales contract or preconstruction sales contract includes rights of interment and funeral or cemetery merchandise or services, the terms of the contract must clearly provide for the application of payments received under the contract.

(6)

An entity engaging in prearrangement sales or preconstruction sales that involve the sale of items subject to trust and any item not subject to trust may not increase the sales price of those items not subject to trust with the purpose of allocating a lesser sales price to items that require a deposit of trust funds.

(7)

Intentionally left blank —Ed.

(a)

Except when the Director of the Department of Consumer and Business Services has made the determination described in subsection (9)(a) of this section, a certified provider may appoint a successor certified provider. The master trustee or depository shall release the trust funds deposited under ORS 97.923 (Definitions for ORS 97.923 to 97.949) to 97.949 (Notification by director to appropriate federal, state or local law enforcement officer of violation of ORS 97.923 to 97.949), 97.992 (Penalties for ORS 97.937), 97.994 (Penalties for ORS 97.931, 97.933, 97.941 and 97.943) and 692.180 (Grounds for revocation, suspension or refusal to issue or renew licenses or certificates) and accrued income only to the successor certified provider as described in ORS 97.943 (Distributions from prearrangement trust fund deposits) and 97.944 (Distributions from preconstruction trust fund deposits).

(b)

If appointing a successor certified provider under this subsection, the original certified provider shall notify the director of the proposed change at least 30 days before the appointment.

(8)

A certified provider may appoint a successor depository or a master trustee and shall notify the director of the proposed change at least 30 days before the appointment.

(9)

Intentionally left blank —Ed.

(a)

The director may appoint a successor certified provider upon a determination that:

(A)

The original certified provider has failed to perform the duties of a certified provider;

(B)

The certificate issued to the original certified provider has been revoked or surrendered; and

(C)

The appointment of a successor certified provider is necessary to protect the interests of the purchasers and beneficiaries of prearrangement sales contracts or preconstruction sales contracts.

(b)

Depositories or master trustees holding deposits of trust funds by the original certified provider shall change their records to reflect the appointment of a successor certified provider upon receipt of written notice of the appointment from the director.

(10)

A trust fund account must be a single purpose fund. In the event of the certified provider’s bankruptcy, the funds and accrued income are not available to any creditor as assets of the certified provider, but must be distributed to the purchasers or managed for the purchasers’ benefit by the trustee in bankruptcy, receiver or assignee.

(11)

Intentionally left blank —Ed.

(a)

If the original certified provider is licensed under ORS chapter 692 and voluntarily surrenders the license to the State Mortuary and Cemetery Board, prearrangement sales contracts and preconstruction sales contracts must be transferred to the successor certified provider appointed by the director.

(b)

If the original certified provider is not licensed under ORS chapter 692, upon presentation of proof of the dissolution or insolvency, or merger with another certified provider, of the original certified provider, the depository shall release the prearrangement trust fund deposits or preconstruction trust fund deposits to the purchaser.

(c)

If the original certified provider is licensed under ORS chapter 692, upon proof of the insolvency or involuntary surrender of the license of the original certified provider, the depository shall release the prearrangement trust fund deposits or preconstruction trust fund deposits to the purchaser.

(12)

The purchaser or beneficiary of a prearrangement sales contract or preconstruction sales contract may be named cotrustee with the certified provider with the written consent of the purchaser or beneficiary.

(13)

A certified provider who has not appointed a master trustee and is placing funds with a depository shall have an annual audit of all trust account funds performed by an independent certified public accountant in accordance with generally accepted accounting procedures. The certified provider shall provide the audit results to the director as part of the annual report required under ORS 97.933 (Certification of provider of prearrangement or preconstruction sales). [Formerly 128.423; 2007 c.661 §19; 2012 c.7 §8]
Note: See note under 97.923 (Definitions for ORS 97.923 to 97.949).

Source: Section 97.941 — Prearrangement or preconstruction trust fund deposits, https://www.­oregonlegislature.­gov/bills_laws/ors/ors097.­html.

97.010
Definitions
97.020
Exemption of certain organizations and cemeteries from certain sections of chapter
97.030
Vested rights not acquired
97.040
Private family burial grounds
97.082
Consent for certain autopsies
97.110
Human remains not to be attached
97.120
Human remains to be deposited in accordance with ORS 97.010 to 97.040, 97.110 to 97.450, 97.510 to 97.730, 97.810 to 97.920 and 97.990
97.130
Right to control disposition of remains
97.145
Liability for failure to conform to written instrument directing control of remains
97.150
Disposition of cremated remains
97.153
Diagnostic or therapeutic radioisotopes in body
97.160
Duty of hospital or sanitarium to notify before sending remains to undertaker
97.170
Disposition of unclaimed body of deceased person
97.180
Period within which body may not be used or dismembered
97.190
Post-mortem examination of body
97.200
Disposition of remains after use
97.210
Exceptions to application of ORS 97.170 to 97.200
97.220
Disinterment
97.223
Interment or temporary storage of human remains in case of natural disaster or other emergency
97.310
Survey and subdivision of land
97.320
Filing map or plat and declaration of dedication of land to cemetery purposes
97.330
When dedication is complete
97.340
Effect of dedication
97.350
Dedication to cemetery purposes not invalid
97.360
Resurvey and alteration in shape or size
97.370
Fixing date of hearing
97.380
Hearing
97.390
Assessment of benefits and damages
97.400
Disposal of newly created lots
97.410
Right of adjacent lot owner upon vacation of way
97.420
Effect of failure to object
97.430
Declaration of exercise of police power and right of eminent domain
97.440
Removal of dedication
97.445
Vacating county interest in cemetery real property
97.450
Discontinuance of cemetery and removal of remains and markers
97.460
Requirements for establishment of cemetery or burial park
97.510
Sale and conveyance of plots by cemetery authority
97.520
Sale or offer to sell cemetery plot upon promise of resale at financial profit
97.530
Commission, bonus or rebate for sale of plot or services
97.540
Commission, bonus or rebate for recommendation of cemetery
97.550
Plots are indivisible
97.560
Presumption of sole ownership in grantee of plot
97.570
Spouse has vested right of interment
97.580
Divestiture of spouse’s right of interment
97.590
Transfer of plot or right of interment
97.600
Descent of plot
97.610
Determining occupant of burial plot having co-owners
97.620
Death of co-owner
97.630
Family plots
97.640
Waiver or termination of vested right of interment
97.650
Limitations upon vested right of interment
97.660
Lands of cemetery, crematory or reduction corporation
97.665
Revenues
97.670
Selling land unsuited for burials
97.675
Burial lots or space
97.680
Recording plan
97.710
Power of cemetery authority to make rules and regulations
97.720
Record of interments, cremations and reductions
97.725
Disposal of unclaimed burial spaces
97.730
Gifts and bequests in trust for cemeteries
97.740
Definitions for ORS 97.740 to 97.760
97.745
Prohibited acts
97.750
Permitted acts
97.760
Civil action by Indian tribe or member
97.772
Definition of “historic cemetery.”
97.774
Oregon Commission on Historic Cemeteries
97.776
Commission members
97.778
Chairperson
97.780
Duties
97.782
Listing of historic cemeteries
97.784
Executive secretary
97.810
Endowment care and nonendowed care cemeteries
97.813
Standards of care for and public access to endowment care cemeteries
97.820
Placing cemetery under endowed care
97.823
Prohibitions related to endowment care cemeteries
97.825
Suits to enforce endowed care statutes
97.830
Investment and reinvestment of principal of endowed care funds
97.835
Limitation of duties and liability of trustee
97.840
Cemetery authority authorized to receive and hold gifts of property
97.843
Endowment and special care funds are charitable
97.846
Agreements for care
97.849
Authority of Department of Consumer and Business Services to take action regarding endowment care cemetery
97.852
Receivership of endowment care cemetery
97.865
Application of ORS 97.810 to 97.865 to religious, county and city cemeteries
97.870
Unused and uncared for portions of cemetery declared common nuisances
97.880
Resolution declaring a nuisance
97.890
Complaint
97.900
Summons
97.910
Disuse as prima facie evidence of abandonment
97.920
Judgment declaring nuisance, authorizing abatement and creating and foreclosing lien
97.923
Definitions for ORS 97.923 to 97.949
97.925
Purpose
97.926
Rulemaking authority
97.927
Applicability of ORS 97.923 to 97.949
97.928
Prohibitions
97.929
Exceptions to ORS 97.923 to 97.949
97.931
Registration of salesperson for endowment care cemeteries, preconstruction sales and prearrangement sales
97.933
Certification of provider of prearrangement or preconstruction sales
97.935
Registration of master trustees
97.936
Emergency orders of suspension or restriction
97.937
Deposit of trust funds made by endowment care cemeteries
97.939
Prearrangement or preconstruction sales contracts
97.941
Prearrangement or preconstruction trust fund deposits
97.942
Appointment of receiver
97.943
Distributions from prearrangement trust fund deposits
97.944
Distributions from preconstruction trust fund deposits
97.945
Funeral and Cemetery Consumer Protection Trust Fund
97.946
Advertising and marketing prohibitions
97.947
Examination of providers and master trustees by director
97.948
Grounds for discipline by director for violation of ORS 97.923 to 97.949
97.949
Notification by director to appropriate federal, state or local law enforcement officer of violation of ORS 97.923 to 97.949
97.951
Short title
97.953
Definitions for ORS 97.951 to 97.982
97.955
Purpose of anatomical gift
97.957
Methods of making anatomical gift before death of donor
97.959
Revocation or amendment of anatomical gift by donor or agent or guardian of donor
97.961
Refusal to make anatomical gift
97.963
Effect of making, amending or revoking anatomical gift
97.965
Persons authorized to make anatomical gift of body or body part of decedent
97.967
Methods for making, amending or revoking anatomical gift of body or body part of decedent by authorized person
97.969
Authorized recipients of anatomical gifts
97.970
Search for document of anatomical gift or refusal
97.971
Delivery of document of gift or refusal not required
97.972
Rights and duties of procurement organizations and others
97.973
Coordination of procurement and use of anatomical gifts
97.974
Immunity of persons acting in accordance with ORS 97.951 to 97.982
97.976
Law governing validity of document of gift
97.977
Donor registry
97.978
Resolution of conflict between potential anatomical gift and advance directive
97.979
Cooperation between medical examiner and procurement organization
97.980
Facilitation of anatomical gift from decedent whose body is under jurisdiction of medical examiner
97.981
Purchase or sale of body parts prohibited
97.982
Alteration of document of anatomical gift prohibited
97.983
Relation to Electronic Signatures in Global and National Commerce Act
97.984
Liability of executor who carries out anatomical gift
97.985
Transplants not covered by implied warranty
97.987
Department of Transportation use of federal moneys for cemetery care
97.990
Penalties
97.992
Penalties for ORS 97.937
97.994
Penalties for ORS 97.931, 97.933, 97.941 and 97.943
Green check means up to date. Up to date