MARVIN MANDEL, Governor                       1523

(b)    For purposes of this section pre-need contracts are defined
to include the entering into of any contract, plan or agreement
wherein a seller agrees to furnish to or for the use of a living person
at the future time of death embalming, cremating, or other serv-
ices and/or the delivery of funeral or burial caskets, vaults, and
clothing such as are normally furnished by licensed funeral directors
and embalmers in the ordinary and normal course of such business.
This section shall not apply to the sale of cemetery lots, gravesites,
mausoleums, or monuments, LAWN CRYPTS, VAULTS, OR OTHER
MERCHANDISE OR SERVICES SOLD BY OTHERS NOT IN
CONNECTION WITH THE PRACTICE OF THE PROFESSION
OF A FUNERAL DIRECTOR AND EMBALMER.

(c)    A pre-need contract shall be executed in duplicate. A signed
copy shall be given to the purchaser which shall contain (1) the
names of the parties including any person who is to receive, upon his
death, the benefits of the services, burial merchandise and vault
contracted for, if said person is other than the purchaser, (2) the
total price agreed upon, (3) the method of payment of purchase
price, (4) a description of the services, burial merchandise and
vault to be furnished.

(d)    All funds paid under a pre-need contract shall be deposited
in an escrow or trust account by the seller within 10 days of receipt
in a bank, trust company, or savings and loan association with
deposits insured by an agency of the United States Government
and/or an agency of the State of Maryland.

No savings institution or corporate trustee shall be responsible for
application of pre-need contract trust funds. Interest or dividends
on pre-need trust account shall be deemed to belong to the purchasers.
Nothing in this section shall be construed to require more than one
pre-need trust account for any funeral director and embalmer so long
as the balance on deposit equals the total amount of all pre-need con-
tract payments and interest which the seller is obligated to retain
on deposit pursuant to this section.

The seller shall refund all amounts paid under the pre-need
contract upon the written demand of the purchaser or his legal rep-
resentative, with interest or dividends thereon, in which event
the pre-need contract between the parties shall terminate. Upon
payment of such refund to the purchaser or the purchaser's legal
representative the seller should be absolved from any further lia-
bility under the pre-need contract.

(e)    Notwithstanding any contract provision to the contrary,
no seller shall be authorized to withdraw any money from any par-
ticular purchaser's account until the services and burial merchan-
dise have been furnished as agreed in the pre-need contract. In the
event that the seller's business is discontinued or for any reason
the seller is unable to perform under the terms and conditions of the
pre-need contract, the balance on deposit shall be promptly refunded