Bond requirement

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  • (a) A bond shall be required of every licensee after ninety (90) days under the following circumstances:

    • (1) Where, after an official examination of said licensee, a deficit in the care and maintenance trust fund, as required by section 2014 of this subchapter was established by the Commissioner or his authorized representative, and the deficit in the trust fund has not been corrected and approved by the Commissioner within 30 days after the Commissioner has notified the cemetery company of said deficit.

    • (2) Upon the transfer of control of any licensee cemetery company in compliance with section 2009 of this subchapter; Provided, however, should the Commissioner required investigation reveal that a change of control is to one or a majority of existing officers or stockholders, and the operation of the licensee cemetery company has been operating in compliance with this chapter, the Commissioner in his discretion may waive the necessity for such bond.

    • (3) Upon the licensing of a new licensee cemetery company under this subchapter and for a period of five years after commencing operations, a bond in the amount of $5,000.00. The Legislature intent being to insure the required contributions into the care and maintenance trust fund until such time as the licensee has developed into an operating concern.

  • (b) Where a bond is required in accordance with this subchapter the amount of said bond shall be based on ten (10) percent of the gross sales from the sale of cemetery spaces in the preceding year, but in no event shall the amount of the bond exceed $25,000.00 except as herein provided.

  • (c) The bond shall run for one year and be renewed on the 31st day of December.


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