Ch. 489 LAWS OF MARYLAND

contract price, the escrow requirements provided for [herein] IN THIS SECTION shall
not be applicable. Delivery of a vault means emplacement, storage on the cemetery
property identified by a record kept by the cemetery, or a certificate of ownership to the
buyer issued by the cemetery or the vault manufacturer.

(5) The trust account shall bear the legend "Preneed Trust Account" and
be established by the seller in its name in the manner specified herein. The seller may
commingle funds derived from 2 or more preneed burial contracts and may establish
more than 1 trust account.

(6) Trust funds shall be withdrawn only on the combined signatures of 2
officers of any corporate seller, or, if unincorporated by at least 2 individuals authorized
to withdraw the funds. The trust accounts shall be administered under the provisions of
this section.

(7) A trustee shall file an annual statement of account of the trust funds as
follows:

(i) A savings and loan association shall file with the State Director of
the Division of Savings and Loan Associations; and

(ii) All other trustees, including State chartered and national banks,
shall file with the State Bank Commissioner.

(8) Nothing in this section shall be deemed to prohibit the sale in a
preneed burial contract of goods and services to be delivered or performed within 120
days after receipt of any payment on account of such sale if the purchaser's obligation
is separately itemized for specific goods and services. If there is no separate itemization,
the deposit requirement shall apply to all payments received by the seller as provided in
this section. If there is a separate itemization, no deposit requirement shall apply to a
contract of goods and services to be delivered or performed within 120 days after
receipt of a payment received by the seller as provided in this section.

(d) (1) Except as otherwise provided in this section, trustees appointed
hereunder shall be governed by the law generally applicable to trustees. If the trustee
appointed hereunder is not located within the State of Maryland, the trust agreement or
other agreement between the seller and the trustee shall expressly incorporate the
provisions of this section.

(2) Each seller providing preneed goods and services shall record and keep
detailed accounts of all preneed burial contracts and specific funds and such records
and those of any trustee appointed by said seller shall be subject to examination by the
Attorney General of Maryland or his designated representative and by the State's
Attorney for the county (including Baltimore City) in which the seller resides.

(3) Each seller providing preneed burial goods and services subject to the
deposit requirements of this section shall file with the Secretary of State within 120 days
following the close of each calendar or other fiscal year chosen by the seller, a report
upon forms prescribed by the Secretary, certified by a certified public accountant
employed by the seller, which shall identify the name and each location of the seller; the

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