§ 20-17-1013 - Permanent maintenance fund generally.
20-17-1013. Permanent maintenance fund generally.
(a) (1) The permanent maintenance fund is declared to be a trust fund for the purpose of administration, care, and maintenance of the cemetery, including lots, graves, spaces, crypts, niches, burial rights, or otherwise.
(2) The net income from the fund shall be paid to and be exclusively used and expended by the owners, managers, or officers and directors of the cemetery company for the care and maintenance of the cemetery and for no other purpose.
(3) The principal of the fund shall be invested and remain invested in such securities and funds as are permitted by the laws of Arkansas for the investment of policy reserves of life insurance companies as set forth in 23-60-101 et seq. and in the common trust funds of state or national banks.
(4) However, any permanent maintenance fund having assets of more than two hundred fifty thousand dollars ($250,000) may invest not more than fifty percent (50%) of its assets in nonassessable common stocks which are listed on a national securities exchange, preferred stocks meeting the requirements of 23-63-815, and investment trust securities meeting the requirements of 23-63-820, and the diversification restrictions of 23-63-805 shall not apply to investments in investment trust securities.
(5) In investing these funds, the trustee shall exercise the judgment and care under the circumstances then prevailing which persons of prudence, discretion, and intelligence exercise in management of their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income and capital appreciation as well as the probable safety of their capital.
(b) The permanent maintenance fund is authorized by this subchapter, and all sums paid into it or contributed to it shall be deemed to be for charitable and eleemosynary purposes.
(c) No rule against perpetuities shall be applicable to funds as mentioned in this section.
(d) (1) The trust fund shall be established by executing a written trust agreement approved by the Arkansas Cemetery Board.
(2) The agreement may provide that the cemetery company may change the trustee of its trust fund so long as the successor trustee is in accordance with 20-17-1014 and the present trustee and successor trustee are parties to the amendment of the agreement.
(e) At a minimum, the trustee shall maintain the following:
(1) A general ledger and general journal or comparable books of entry showing all receipts, disbursements, assets, liabilities, and income of the trust fund;
(2) Documents supporting and verifying each asset of the trust fund; and
(3) A trust agreement.
(f) In establishing a permanent maintenance fund, the cemetery company may from time to time adopt plans for the general care and maintenance of its cemetery.