§ 1507. Trust funds.\n (a) Maintenance and preservation; permanent maintenance fund; current\nmaintenance fund. Subject to rules and regulations of the cemetery\nboard: (1) Every cemetery corporation shall maintain and preserve the\ncemetery, including all lots, plots and parts thereof. For the sole\npurpose of such maintenance and preservation, every cemetery corporation\nshall establish and maintain (A) a permanent maintenance fund, and (B) a\ncurrent maintenance fund. At the time of making the sale of a lot, plot\nor part thereof, the cemetery corporation shall deposit not less than\nten per centum of the gross proceeds of the sale into the permanent\nmaintenance fund. An additional fifteen per centum of the gross proceeds\nof the sale shall be deposited in the current maintenance fund. In\naddition to the foregoing, at the time the cemetery corporation receives\npayment for the performance of an interment or inurnment, the cemetery\ncorporation shall collect and deposit into the permanent maintenance\nfund the sum of thirty-five dollars. (2) The permanent maintenance fund\nis hereby declared to be and shall be held by the corporation as a trust\nfund, for the purpose of maintaining and preserving the cemetery,\nincluding all lots, crypts, niches, plots, and parts thereof. The\nprincipal of such fund shall be invested in such securities as are\npermitted for the investment of trust funds by section 11-2.3 of the\nestates, powers and trusts law. The income in the form of interest and\nordinary dividends therefrom shall be used solely for the maintenance\nand preservation of the cemetery grounds. In addition, in any year, the\ngoverning board of a qualified corporation, as defined below, may\nappropriate for expenditure solely for the maintenance and preservation\nof the cemetery grounds, and treat as income for all purposes, an amount\nof trust principal equal to the excess, if any, of a percentage of the\nfair market value of the principal of the trust, as of the last day of\nthe cemetery's immediately preceding fiscal year, as is prudent under\nthe standard established by article five-A of this chapter, the prudent\nmanagement of institutional funds act over interest and ordinary\ndividends received in such year; provided, however, that an\nappropriation of an amount (the safe harbor amount) of trust principal\nequal to the excess of up to four percent of the fair market value of\nthe principal of the trust, as of the last day of the cemetery's\nimmediately preceding fiscal year over interest and ordinary dividends\nreceived in such year shall be deemed to be prudent in all events. A\n"qualified corporation" means a cemetery corporation which adopts a\nwritten investment policy setting forth guidelines on investments and\ndelegation of management and investment functions in accord with the\nstandards of article five-A of this chapter. If a cemetery corporation\nseeks to appropriate any percentage of the principal of the permanent\nmaintenance fund in accordance with this subparagraph, the cemetery\ncorporation shall provide notice of such proposed appropriation and\nprovide a copy of its written investment policy by certified mail to the\ncemetery board not less than sixty days in advance of such proposed\nappropriation and shall disclose such appropriation as part of and in\naddition to their annual reporting requirements as defined in section\nfifteen hundred eight of this article, setting forth the amount of\nprincipal to be appropriated for such expenditure and its effect on the\npermanent maintenance fund. Such proposed appropriation shall become\neffective sixty days after receipt of such notice, unless the proposed\nappropriation exceeds the safe harbor amount or the written investment\npolicy is not provided or is not prepared in accordance with the\nstandards of article five-A of this chapter, and the cemetery board\nwithin such sixty-day period notifies the cemetery corporation that the\nboard objects to the p
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