§ 5-709. Disbursement of money -- On termination of contract

   (a) By cancellation. --

   (1) A buyer may cancel a preneed burial contract as to preneed goods not delivered or preneed services not performed if the buyer:

      (i) permanently moves more than 75 miles from the cemetery specified in the preneed burial contract; and

      (ii) gives to the seller written notice, under oath, of the move and includes the buyer's new permanent address.

   (2) In that event:

      (i) the seller shall certify to the trustee:

         1. the cancellation of the preneed burial contract;

         2. the amount of the remaining specific funds applicable to the preneed burial contract; and

         3. the name and address of the buyer; and

      (ii) the trustee shall then pay to the buyer the remaining specific funds and accrued interest.

(b) Cancellation of purchase. --

   (1) Notwithstanding subsection (a) of this section, by written notice, a buyer may cancel the purchase of a casket or casket vault under a preneed burial contract at any time prior to the time the buyer needs the casket or casket vault for burial.

   (2) In that event:

      (i) the seller shall certify to the trustee:

         1. the cancellation of the purchase of the casket or casket vault under the preneed burial contract;

         2. the amount of the specific funds applicable to the casket or casket vault under the preneed burial contract; and

         3. the name and address of the buyer;

      (ii) the trustee shall pay to the buyer the specific funds and interest accrued on those funds; and

      (iii) in addition to the refund paid by the trustee, the seller shall pay to the buyer an amount of money necessary to provide the buyer with a refund of 100% of the money paid for the casket or casket vault under the preneed burial contract.

(c) By default. -- If a buyer fails to provide written notice of cancellation and defaults on a preneed burial contract and, as a result, the seller terminates the preneed burial contract:

   (1) the seller shall certify to the trustee:

      (i) the default and termination of the preneed burial contract;

      (ii) the amount of the specific funds; and

      (iii) the reasonable expenses of the seller; and

   (2) the trustee shall then pay:

      (i) to the buyer, those specific funds and accrued interest, less the reasonable expenses of the seller; and

      (ii) to the seller, the reasonable expenses of the seller.

(d) By dormancy. -- If specific funds on deposit in a trust account have been dormant for at least 50 years since the date of the last deposit or disbursement and the seller cannot locate the buyer:

   (1) the seller shall certify to the trustee:

      (i) that the trust account is dormant and the buyer cannot be located; and

      (ii) the amount of the specific funds; and

   (2) the trustee shall then pay to the seller those specific funds and accrued interest.

HISTORY: An. Code 1957, art. 23, § 165B; 1992, ch. 4, § 2; 1997, ch. 675, § 1; 1998, ch. 664.