§ 20-17-1012 - Permit -- Transfer of ownership.
20-17-1012. Permit -- Transfer of ownership.
(a) (1) Whenever any change is proposed in the controlling interest or ownership of any perpetual care cemetery or any cemetery company or any organization that, directly or indirectly, owns a controlling interest in the cemetery company, the cemetery company that holds the current permit and the individual or organization proposing to obtain ownership or gain control shall file an application for the issuance of a new permit with the Arkansas Cemetery Board.
(2) The application shall be accompanied by:
(A) A fee of one thousand five hundred dollars ($1,500);
(B) A statement of changes, if any, in the survey and map of the cemetery;
(C) A set of rules and regulations for the use, care, management, and protection of the cemetery;
(D) The proposed method of continuing the permanent maintenance fund presently in existence;
(E) A statement of the proposed transfer;
(F) A copy of a current title opinion by an Arkansas-licensed attorney or title insurance policy that reflects that the current permit holder has good and merchantable title to the land covered by the permit;
(G) A notarized statement from the seller and purchaser disclosing any current or future lien or mortgage on the land covered by the permit;
(H) A notarized statement from any current or future lienholder or mortgage holder on the land covered by the permit that all paid- in-full burial spaces will be released from the lien or mortgage at least semiannually;
(I) (i) A current detailed accounting of all paid-in-full merchandise contracts or accounts of the permit holder and seller for which the merchandise has not been delivered to the purchaser or placed in inventory for the benefit of the purchaser.
(ii) This accounting shall be on an individual contract or account basis and contain the name of the purchaser, the contract or account number, the date of the contract, the gross amount of the contract, a description of the merchandise purchased, the date the contract or account was paid in full, and the specific location where the merchandise is stored;
(J) A current notarized statement from the permit holder and seller that the application contains a complete and accurate accounting of all his or her outstanding accounts receivable, discounted notes, and paid-in-full merchandise accounts or contracts for which the merchandise has not been delivered to the purchaser or placed in inventory for the benefit of the purchaser;
(K) A current notarized statement from the purchaser or organization gaining control that it will assume the responsibility and liability for all the accounts, notes, and contracts of the seller that are contained in the accountings and schedules that are filed as a part of the application;
(L) The financial statements of the applicant and purchaser required by the rules which reflect that the applicant and purchaser has a minimum net worth of twenty thousand dollars ($20,000); and
(M) Any additional information required by the board or the Securities Commissioner.
(3) The board may for good cause waive all or part of an application requirement if the purchaser of a perpetual care cemetery is a state, city, or municipal government or a nonprofit organization as defined by 501(c)(3) of the Internal Revenue Code, 26 U.S.C. 501(c)(3).
(b) Each vendor or the transferor of the cemetery company or interest therein shall remain liable for any funds and transactions up to the date of the sale or transfer.
(c) (1) Prior to the sale or transfer, the vendor or the transferor shall notify the board of the proposed sale or transfer and shall submit to the board, under oath, any document or record the board may require in order to demonstrate that the vendor or transferor is not indebted to the permanent maintenance fund.
(2) After the transfer of ownership or control, the vendor or transferor shall present to the board proof of currency in the permanent maintenance fund.
(3) The board may additionally require the presentation of proof of the continued current status of the permanent maintenance fund by the vendee or transferee for such reasonable period of time as the board may determine to be necessary in the public interest.
(4) The board is further authorized to recover from that vendor or transferor or vendee or transferee, for the benefit of the permanent maintenance fund, all sums that the vendor or transferor or vendee or transferee has not properly accounted for and paid into the trust fund, together with reasonable expenses incurred by the board by bringing this action.
(d) The cemetery company that has been issued a permit to operate a cemetery under this subchapter shall remain liable for the maintenance and care of the cemetery and all amounts due the permanent maintenance fund until a new permit is issued to the vendee or transferee.
(e) No new permit shall be issued to the vendee or transferee of any cemetery until that vendee or transferee complies with this subchapter and the board orders a new permit to be issued to the vendee or transferee.
(f) Any vendor or transferor or vendee or transferee who violates this section shall be guilty of a violation and upon conviction shall be fined not less than one hundred dollars ($100) nor more than five hundred dollars ($500) for the violation.