§ 453. Moneys paid in connection with agreements for funeral\nmerchandise or services in advance of need to be kept on deposit pending\nuse or repayment. 1. (a) Any and all moneys paid to a funeral firm,\nfuneral director, undertaker, cemetery, or any other person, firm or\ncorporation, under or in connection with an agreement, or any option to\nenter into an agreement, for the sale of merchandise to be used in\nconnection with a funeral or burial, or for the furnishing of personal\nservices of a funeral director or undertaker, wherein the merchandise is\nnot to be actually physically delivered or the personal services are not\nto be rendered until the occurrence of the death of the person for whose\nfuneral or burial such merchandise or services are to be furnished shall\ncontinue to be the money of the person making such payment and shall be\nheld in trust for such person by the funeral firm, funeral director,\nundertaker, cemetery or any other person, firm or corporation to whom\nsuch payment is made and shall, within ten business days of receipt, be\ndeposited in an interest bearing account in a bank, national bank,\nfederal savings bank, federal savings and loan association, savings\nbank, savings and loan association, credit union, or federal credit\nunion within the state and duly authorized to receive deposits in the\nstate of New York and which shall earn interest at a rate which shall be\nat not less than the prevailing rate of interest earned by other such\ndeposits in such banks, savings banks, savings and loan associations, or\ncredit unions under this section, or shall be placed in a trust company\nin an investment backed by the government of the United States and shall\nnot be commingled with other moneys of the funeral firm, funeral\ndirector, undertaker, cemetery, or other person, firm or corporation or\nbecome the funds of the funeral firm, funeral director, undertaker,\ncemetery, or other person, firm or corporation, and shall be so held on\ndeposit, together with any interest thereon with interest earned being\naccrued daily and credited monthly, until said merchandise has been\nactually physically delivered and said personal services have been\nrendered, unless sooner repaid, in whole or in part. No funeral firm,\nfuneral director, undertaker, cemetery or any other person, firm or\ncorporation, shall discharge the obligation established under this\nsection to deposit or place money with a bank, national bank, federal\nsavings bank, federal savings and loan association, savings bank,\nsavings and loan association, credit union, federal credit union or\ntrust company within the state through a surety bond or other financial\ninstrument unless expressly provided under this section.\n (b) Such funeral firm, funeral director, undertaker, cemetery, or\nother person, firm or corporation which received such moneys shall,\nwithin thirty business days after the deposit or any change in the\ninstitution in which such funds are deposited, provide written\nnotification to the person who made such payment of the institution of\nthe deposit and, until such moneys have been repaid or the personal\nservices and merchandise have been provided, shall annually provide the\nperson who made such payment with a statement identifying the location\nand annual interest earned by the account.\n (c) Upon request of the person who made such payment, or his or her\nrepresentative, the funeral firm, funeral director, undertaker, cemetery\nor other person, firm or corporation which received such moneys shall\nprovide a statement within thirty days of such request identifying the\nlocation of the account, amount of such account and interest earned on\nsuch account. Upon the provision of any merchandise or personal services\nin connection with any such agreement, the funeral firm, funeral\ndirector, undertaker, cemetery or other person, firm or corporation\nwhich received such moneys shall provide a statement itemizing the\nmerchandise o
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