(a)(1) A buyer may cancel a preneed burial contract as to preneed goods not delivered or preneed services not performed if the buyer:
(i) permanently moves more than 75 miles from the cemetery specified in the preneed burial contract; and
(ii) gives to the seller written notice, under oath, of the move and includes the buyer's new permanent address.
(2) In that event:
(i) the seller shall certify to the trustee:
1. the cancellation of the preneed burial contract;
2. the amount of the remaining specific funds applicable to the preneed burial contract; and
3. the name and address of the buyer; and
(ii) the trustee shall then pay to the buyer the remaining specific funds, accrued interest on the specific funds, and a prorated proportional share of total realized capital gains attributable to the specific funds.
(b)(1) Notwithstanding subsection (a) of this section, by written notice, a buyer may cancel the purchase of a casket or casket vault under a preneed burial contract at any time prior to the time the buyer needs the casket or casket vault for burial.
(2) In that event:
(i) the seller shall certify to the trustee:
1. the cancellation of the purchase of the casket or casket vault under the preneed burial contract;
2. the amount of the specific funds applicable to the casket or casket vault under the preneed burial contract; and
3. the name and address of the buyer;
(ii) the trustee shall pay to the buyer the specific funds, interest accrued on the specific funds, and a prorated proportional share of total realized capital gains attributable to the specific funds; and
(iii) in addition to the refund paid by the trustee, the seller shall pay to the buyer an amount of money necessary to provide the buyer with a refund of 100% of the money paid for the casket or casket vault under the preneed burial contract.
(c) If a buyer fails to provide written notice of cancellation and defaults on a preneed burial contract and, as a result, the seller terminates the preneed burial contract:
(1) the seller shall certify to the trustee:
(i) the default and termination of the preneed burial contract;
(ii) the amount of the specific funds; and
(iii) the reasonable expenses of the seller; and
(2) the trustee shall then pay:
(i) to the buyer, those specific funds, accrued interest on the specific funds, and a prorated proportional share of total realized capital gains attributable to the specific funds, less the reasonable expenses of the seller; and
(ii) to the seller, the reasonable expenses of the seller.
(d) If specific funds on deposit in a trust account have been dormant for at least 50 years since the date of the last deposit or disbursement and the seller cannot locate the buyer:
(1) the seller shall certify to the trustee:
(i) that the trust account is dormant and the buyer cannot be located; and
(ii) the amount of the specific funds; and
(2) the trustee shall then pay to the seller those specific funds, accrued interest on the specific funds, and a prorated proportional share of total realized capital gains attributable to the specific funds.
Credits
Acts 1992, c. 4, § 2; renumbered from Business Regulation § 5-409 by Acts 1997, c. 675, § 1, eff. July 1, 1997. Amended by Acts 1998, c. 664, § 1, eff. Oct. 1, 1998; Acts 2014, c. 81, § 1, eff. July 1, 2014.
Formerly Art. 23, § 165B.
MD Code, Business Regulation, § 5-709, MD BUS REG § 5-709
Current through legislation effective through April 25, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
