§ 20-17-1015 - Permanent maintenance fund -- Annual report.

20-17-1015. Permanent maintenance fund -- Annual report.

(a) Within sixty (60) days after the end of each calendar year, the Arkansas Cemetery Board shall require the trustee of the permanent maintenance fund to file, under oath, a detailed annual report of the condition of the fund, setting forth the description of the assets of the fund, a description of any property upon which any security constitutes a lien, the cost of acquisition of the asset, the market value of any asset at the time of its acquisition with the current market value of the asset and its status with reference to default, and stating that they are not in any way encumbered by debt, that none of the assets of the fund constitute loans to the cemetery company for which the trust fund is established or to any officer or director thereof, and any other information the trustee or the board deems pertinent.

(b) The report shall show the amounts of principal and undistributed income of the fund at the beginning of the period, the amounts deposited by the cemetery company into the fund during the period, the income earned and disbursements made during the period, the details of any investment or reinvestment during the period, and the balances of principal and income at the end of the period being reported on.

(c) (1) If the trustee of the fund fails to meet the requirements of this section, then it shall be the duty of the board to apply to the Pulaski County Circuit Court for an order to require the trustee of the fund to file a proper report and to make any additional contributions due to the failure to timely file the annual report.

(2) If funds have been misappropriated by the trustee or are not being handled as required by law, then the board shall apply to the circuit court in the county in which the cemetery is located to have a receiver or conservator appointed by the court to take custody of the trust funds for the benefit of the cestui que trust. The receiver or conservator is vested with full power to file such suits against the defaulting trustee as may be necessary to require a full accounting and restoration of the trust funds and to turn the residue over to another trustee as the cemetery shall select, in conformity with this subchapter, as the new trustee of the permanent maintenance fund.

(3) Failure by the trustee to make a timely filing of the annual report required by subsection (a) of this section shall be grounds for the trustee to pay an additional contribution to the permanent maintenance fund of fifty dollars ($50.00) per day until the report is filed with the board.