Section 5-707 - Administration of trust accounts.
§ 5-707. Administration of trust accounts.
(a) "Seller's account" defined.- In this section, "seller's account" means:
(1) the total of specific funds deposited from all preneed burial contracts of a seller commingled in a single fund; and
(2) any income derived from investing the money in the fund.
(b) Administration - In general.- Trust accounts shall be administered as this subtitle provides.
(c) Applicability of law.-
(1) Except as otherwise provided in this subtitle, a trustee appointed under this subtitle is subject to the law that is generally applicable to trustees.
(2) If a trustee appointed under this subtitle is not located in the State, the agreement between the seller and the trustee expressly shall incorporate this subtitle.
(d) Reliance on certifications.- A trustee:
(1) may rely on all certifications made under or required by this subtitle; and
(2) is not liable to any person for that reliance.
(e) Investment of money.-
(1) A trustee may invest money of a trust account in any security that is a lawful investment for a fiduciary, including a time deposit or certificate of deposit issued by the trustee.
(2) Except as otherwise provided in this subtitle, to ensure that money in the trust account is adequate, the trust income shall:
(i) remain in the trust account;
(ii) be reinvested and compounded; and
(iii) be disbursed only for payment of appropriate trustee's fees, commissions, and other costs of the trust account.
(f) Transfer to another trustee.-
(1) A seller, on written notice to the trustee and in accordance with the agreement between them, may transfer the seller's account to another trustee.
(2) A trustee, on written notice to the seller and in accordance with the agreement between them, may transfer the seller's account to another trustee.
[An. Code 1957, art. 23, § 165B; 1992, ch. 4, § 2; 1996, ch. 326, § 2; 1997, ch. 675, §§ 1, 2; 2001, ch. 186, § 1.]