WILLIAM DONALD SCHAEFER, Governor Ch. 680
irrevocable trusts under certain circumstances.

BY repealing and reenacting, with amendments,
Article - Health Occupations
Section 6-404

Annotated Code of Maryland
(1986 Replacement Volume and 1989 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Health Occupations

6-404.

(a) In this section, "seller" means a person who agrees to provide services or
merchandise, directly or indirectly, under a pre-need contract.

(b) Only a licensed mortician, a licensed funeral director, or a holder of a
surviving spouse license may offer or agree, directly or indirectly, to provide services or
merchandise under a pre-need contract.

(c) (1) A pre-need contract shall contain:

(i) The name of each party to the contract and, if the beneficiary is
an individual other than the buyer, the name of the beneficiary of the contract;

(ii) A description of any service or merchandise to be provided under
the pre-need contract;

(iii) The total price of the services and merchandise agreed on; and
(iv) The method of payment.

(2) A pre-need contract shall be executed in duplicate and be signed by
each party.

(3) The seller shall give one of the duplicate originals of the pre-need
contract to the buyer.

(d) (1) Within 10 days after receiving a payment under a pre-need contract,
the seller shall deposit the payment into an escrow or trust account with:

(i) A banking institution that is insured by an agency of the federal
government or an agency of this State; or

(ii) A savings and loan association that is insured by an agency of the
federal government or an agency of this State.

(2) A seller need not have a separate escrow or trust account for each
pre-need contract.

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