Ch. 680 LAWS OF MARYLAND

(3) Any interest or dividends earned by the escrow or trust account belong
to the buyers of the pre-need contracts.

(e) (1) The EXCEPT AS MAY BE PROVIDED IN AN IRREVOCABLE
TRUST ESTABLISHED UNDER PARAGRAPH (4) OF THIS SUBSECTION, THE

banking institution or savings and loan association with which funds are deposited
under this section is not responsible for the application of pre-need contract escrow or
trust funds.

(2) Except as otherwise provided in this subsection, a seller may not
withdraw from the account any money received from a buyer unless the services and
merchandise have been provided as agreed in the contract.

(3) A pre-need contract is ended and a seller shall refund to a buyer all
payments and interest held for the buyer if:

(i) The buyer or the legal representative of the buyer demands in
writing a refund of all payments made;

(ii) The business of the seller is discontinued;

(iii) The seller is unable to perform under the terms and conditions of
the pre-need contract; or

(iv) The buyer fails to pay the entire contract price before the death
of the beneficiary, and the seller considers the pre-need contract void.

(4) (I) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH
(3) OF THIS SUBSECTION, THE BUYER OF A PRE-NEED CONTRACT HAS
THE OPTION, AT ANY TIME, TO DECLARE ALL OR A PORTION OF THE
FUNDS IN THE ESCROW OR TRUST ACCOUNT HELD BY THE SELLER TO BE
AN IRREVOCABLE TRUST IN ANY AMOUNT NECESSARY TO ENTITLE TO
ESTABLISH, UNDER PARAGRAPH (5) OF THIS SUBSECTION, AN
IRREVOCABLE TRUST WITH RESPECT TO ALL OR ANY PORTION OF THE
PAYMENT MADE UNDER THE CONTRACT IN THE ESCROW OR TRUST
ACCOUNT HELD BY THE SELLER, BUT ONLY FOR THE PURPOSE OF
ENTITLING THE BUYER TO BE ELIGIBLE FOR ANY CURRENT SOCIAL
SECURITY BENEFITS OR FOR ANY BENEFITS UNDER ANY OTHER PLAN
THAT RESTRICTS ELIGIBILITY TO THOSE WITH LIMITED ASSETS.

(5) THE TRUST DOCUMENT ESTABLISHING A TRUST UNDER
PARAGRAPH (4) OF THIS SUBSECTION SHALL PROVIDE FOR:

(I) THE DISPOSITION OF THE INCOME EARNED BY THE
TRUST WHICH SHALL INURE TO THE BENEFIT OF THE BUYER;

(II) THE TRANSFER OF THE TRUST FUNDS IF REQUIRED
BY A TRUSTEE SUBSTITUTED UNDER PARAGRAPH (6) OF THIS
SUBSECTION; AND

(III) THE DISPOSITION OF THE TRUST FUNDS IF:
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