PARRIS N. GLENDENING, Governor                             Ch. 675

(g) (F) "Seller" means a [person] REGISTERED CEMETERIAN, REGISTERED
SELLER, OR ANY OTHER PERSON who sells preneed goods or preneed services.

(h) (G) "Specific funds" means money that is identified to a specific preneed
burial contract.

(i) (H) "Trust account" means a preneed trust account.
5-704.

(e) (1) Except as otherwise provided in this subsection, a preneed burial
contract may not provide for interest or a finance charge.

(2)     A cemetery that makes a preneed burial contract may impose interest or
a finance charge on preneed goods delivered before death or preneed services performed
before death.

(3)     A [cemetery] REGISTERED CEMETERIAN OR PERMIT HOLDER may
sell a preneed burial contract to a commercial lending institution if the preneed burial
contract signed by the original buyer of the preneed goods or preneed services contains
the following language in 12-point or larger type:

"Notice to consumers: This contract of sale may be sold to a commercial lending
institution. After the sale, the commercial lending institution may impose interest or a
finance charge on the remaining balance due".

5-705.

(a) (1) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, [A] A
seller shall put in trust the second 50% of the total preneed burial contract price as the
seller receives payments from the buyer.

[(b)](2) Within 30 days after receipt of the last payment, the seller shall deposit
an additional amount to make the balance in the trust account equal to 55% of the total
contract price.

(B) A SELLER SHALL PUT IN TRUST AN AMOUNT FROM THE PAYMENT THAT IS
EQUAL TO 100% 80% OF THE SELLING PRICE OF A ANY CASKET OR CASKET VAULT
SOLD UNDER THE PRENEED BURIAL CONTRACT,

(c) This section does not apply to:

(1)     a preneed burial contract under which all preneed goods and preneed
services, other than dates, scrolls, and other additions that represent not more than 10%
of the total contract price, must be delivered or performed within 120 days after receipt of
50% of the total contract price: or

(2)     money that a seller receives for preneed goods or preneed services to be
delivered or performed within 120 days after receipt of any payment on account of the
sale, if the buyer's obligation for these preneed goods or preneed services is separately
itemized.

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