3568

LAWS OF MARYLAND

Ch. 765

AND SERVICES NOT TO BE DELIVERED OR PERFORMED WITHIN 120 DAYS
AFTER THE RECEIPT OF THE PAYMENT, THE SELLER RECEIVING THE
PAYMENT DEPOSITS WITH A TRUSTEE AN AMOUNT EQUAL TO 85 70 PERCENT
OF THAT PORTION OF THE RETAIL PRICE OF THE PRODUCT OR SERVICES
REPRESENTED BY THE PAYMENT.

(C) (1) EXCEPT AS PROVIDED HEREIN, A CONTRACT ENTERED INTO
MAY NOT CONTAIN ANY INTEREST OR FINANCE CHARGES.

(I) A CEMETERY ENTERING INTO A CONTRACT FOR THE
SALE OF GOODS OR SERVICES MAY IMPOSE AN INTEREST OR FINANCE
CHARGE FOR ANY GOODS DELIVERED OR SERVICES PERFORMED PRIOR TO
NEED OR DEATH.

(II) A CEMETERY MAY SELL A CONTRACT FOR THE
SALE OF GOODS OR SERVICES TO A COMMERCIAL LENDING INSTITUTION
PROVIDED THE CONTRACT SIGNED BY THE ORIGINAL PURCHASER OF THE
GOODS OR SERVICES CONTAINS THE FOLLOWING CLAUSE IN 12-POINT TYPE
OR LARGER:

"NOTICE TO CONSUMERS: THIS CONTRACT OF SALE MAY
BE SOLD TO A COMMERCIAL LENDING INSTITUTION. UPON SUCH SALE AN
INTEREST OR FINANCE CHARGE ON THE REMAINING BALANCE DUE MAY BE
IMPOSED BY THE PURCHASER OF THIS CONTRACT."

(2) ANY PRENEED BURIAL CONTRACT IN WHICH THE GOODS
AND SERVICES ARE NOT TO BE DELIVERED OR PERFORMED WITHIN 120 DAYS
AFTER RECEIPT OF PAYMENT SHALL HAVE A PORTION OF THE PAYMENTS
RECEIVED PLACED IN A TRUST ACCOUNT AS PROVIDED IN SUBPARAGRAPH
(3) OF THIS SUBSECTION.

(3) PAYMENTS RECEIVED FOR GOODS AND SERVICES THAT ARE
NOT TO BE DELIVERED WITHIN 120 DAYS AFTER RECEIPT OF PAYMENT ARE
SUBJECT TO THE FOLLOWING ESCROW REQUIREMENTS:

(I) THE SELLER SHALL NOT BE REQUIRED TO ESCROW
THE FIRST 50% OF THE TOTAL RETAIL CONTRACT PRICE.

(II) THE SELLER SHALL BE REQUIRED TO ESCROW THE
SECOND 50% OF THE TOTAL RETAIL CONTRACT PRICE AS PAYMENTS THEREON
ARE RECEIVED FROM THE BUYER.

(III) WITHIN 30 DAYS FOLLOWING RECEIPT OF THE
LAST PAYMENT ON THE CONTRACT PRICE, THE SELLER SHALL DEPOSIT AN
ADDITIONAL SUM TO MAKE THE BALANCE IN THE ESCROW ACCOUNT
SUFFICIENT TO EQUAL 67% OF THE TOTAL RETAIL PRICE OF THE
CONTRACT.

(4) IN ANY PRENEED BURIAL CONTRACT WHERE DELIVERY OF
THE GOODS AND SERVICES ARE DELIVERED OR PERFORMED WITHIN 120 DAYS
AFTER RECEIPT OF THE FIRST 50% OF THE TOTAL CONTRACT PRICE, THE
ESCROW REQUIREMENTS PROVIDED FOR HEREIN SHALL NOT BE APPLICABLE.
DELIVERY OF A VAULT MEANS ENPLACEMENT, 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.