1. The principal of all funds for endowment care must be invested and the money disbursed from an endowment care fund must be used for the care, maintenance and embellishment of the cemetery, in accordance with the provisions of law and the resolutions, bylaws, rules and regulations or other actions or instruments of the cemetery authority, and for no other purpose. Endowment care funds and special care funds must be maintained separate and distinct from all other funds and the trustees shall keep separate records thereof.
2. The trustee of the endowment care fund shall:
(a) Create a reserve from which principal losses may be replaced by setting aside a reasonable percentage of the income from the fund.
(b) Except as otherwise provided in subsection 3, make monthly disbursements of the income earned from the fund to the cemetery authority.
(c) Pay all capital gains taxes imposed on the fund from the principal of the fund.
3. On January 1 of any calendar year, a cemetery authority may, by giving written notice to the trustee of the endowment care fund and the Administrator of its intention to do so at least 30 days before that date:
(a) Operate the fund as a unitrust subject to the provisions of NRS 452.165 or cease operating the fund in that manner;
(b) Change the method or rate of disbursements from the fund; or
(c) Change the frequency of disbursements from the fund. Money may be disbursed from an endowment care fund to the cemetery authority on a monthly, quarterly, semiannual or annual basis.
[2:138:1953] — (NRS A 2017, 1203)