(2) Except as provided in this section, the fund shall be used solely for the purpose of providing restitution to purchasers who have suffered pecuniary loss arising out of prearrangement sales contracts or preconstruction sales contracts. The fund may be used for payment of actual administrative expenses incurred in administering the fund. All moneys in the Funeral and Cemetery Consumer Protection Trust Fund are appropriated continuously to the director for the payment of restitution under this section and the payment of expenses incurred in performing the duties and functions of the director required under ORS 97.923 to 97.949, 97.992, 97.994 and 692.180.
(3) The director shall administer the fund and shall adopt rules governing the payment of restitution from the fund.
(4) Payments for restitution shall be made only upon order of the director where the director determines that the obligation is noncollectible from the certified provider. Restitution must not exceed the amount of the sales price paid plus interest at the statutory rate.
(5) The fund must not be applied toward any restitution for losses on a prearrangement sales contract or preconstruction sales contract entered into prior to September 27, 1987.
(6) The fund must not be allocated for any purpose other than that specified in ORS 97.923 to 97.949, 97.992, 97.994 and 692.180.
(7) If the director proposes to deny an application for restitution from the fund, the director shall accord an opportunity for a hearing as provided in ORS chapter 183.
(8) Notwithstanding any other provision of this section, the payment of restitution from the fund is a matter of grace and not of right and no purchaser has vested rights in the fund as a beneficiary or otherwise.
(9)(a) The director shall annually review the status of the fund. If the director determines that the fund together with all accumulated income earned on the fund is sufficient to cover costs of potential claims against the fund and that the total number of outstanding claims filed against the fund is less than 10 percent of the fund’s current balance, then payments to the fund may be adjusted accordingly at the discretion of the director.
(b) If the fund’s balance falls below acceptable levels to meet future obligations, the director by rule may increase the fee or impose an assessment on certified providers.
(c) The balance of the fund may not exceed $2 million. The director is authorized to adjust the fee or assessment as necessary to comply with this paragraph. [Formerly 128.435; 2003 c.362 §5; 2012 c.7 §11]
Note: See note under 97.923.