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24.147.1601    TRUST FUNDS – GENERAL

(1) This rule applies to cemetery perpetual and maintenance trust funds and preneed funeral trust funds managed by mortuaries and crematories. 

(2) The following individuals or entities cannot borrow any prepaid funeral trust funds, including principal or accrued interest either directly or indirectly, for the director or officer, or as the partner or agent of others:

(a) any licensee of the board;

(b) any director, officer, or employee of any mortuary, cemetery, crematory, or other provider; and

(c) any member of a cemetery company.

(3) None of those listed in (2) can:

(a) become an endorser or surety for loans to others; or

(b) in any manner be an obligor for money borrowed from or loaned by the prepaid funeral trust funds.

(4) No business entity in which a licensee, employee of a licensee, or family member of a licensee has an interest can borrow any of the funds of a prepaid funeral trust fund.

(5) Per 37-19-829, MCA, banking institutions, savings or building and loan associations, or credit unions in which trusts are held are required to submit an annual report to the board regarding trust accounts held by those institutions using a board-developed reporting form.


History: 37-1-131, 37-19-202, 37-19-807, MCA; IMP, 37-1-131, 37-19-807, 37-19-827, 37-19-828, 37-19-829, MCA; NEW, 2017 MAR p. 2187, Eff. 11/25/17.

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