§ 1511. Cemetery indebtedness.\n (a) Certificates of indebtedness. (1) If a cemetery corporation be\nindebted for lands purchased for cemetery purposes, or for services\nrendered or materials furnished in connection with the necessary and\nproper preservation or improvement of its cemetery or for moneys\nborrowed exclusively for payment of such services or materials, the\ndirectors, by the concurring vote of a majority of their whole number,\nwith the consent of the creditor to whom such indebtedness is owing, may\nissue certificates under the corporate seal, signed by the president and\nsecretary, for such amount, payable at the times and at the rate of\ninterest agreed upon but not to exceed six per centum per annum;\nprovided, however, that there be first obtained from the cemetery board\nan order approving the issuance of such certificates. In the case of\ncertificates of indebtedness issued for moneys borrowed exclusively for\npayment for services rendered or materials furnished in connection with\nthe necessary and proper preservation or improvement of its cemetery the\nconsent of the creditor to whom such indebtedness is owing shall not be\nrequired. (2) Such approval shall be given by the cemetery board only\nif it determines that the amount of the certificates proposed to be\nissued does not exceed the fair and reasonable value of the services\nrendered or materials furnished or the purchase price of real property\nas fixed in accordance with subdivision (b) of this section. No\ncertificate issued shall be valid or enforceable unless there has first\nbeen issued by the cemetery board an order of approval as herein\nprovided. No certificate shall be for less than one hundred dollars.\nThe certificate shall be transferable by delivery, unless therein\notherwise provided. (3) The directors shall keep an account of the\nnumber and amount of such certificates, the persons to whom issued, the\ndate of maturity, the rate of interest and the purpose for which the\nsame were issued. Each cemetery corporation shall file with the\ncemetery board a verified statement setting forth all changes in such\naccount during the previous calendar or fiscal year. (4) The directors\nshall set aside from the proceeds of sales of lots, plots and parts\nthereof such sums to pay such certificates at maturity as they deem\nnecessary. Until the certificates are paid the holders thereof shall be\nentitled at all meetings of the corporation, to one vote for each one\nhundred dollars of indebtedness remaining unpaid, except that those\ncertificates of indebtedness issued for moneys borrowed exclusively for\npayment of services or materials shall have no voting power. The\ncertificates shall not be a lien upon any lot, plot or part thereof\nbelonging to a lot owner.\n (b) Application of proceeds of sales of lots. (1) At least one-half\nof the proceeds of sales of lots or the use thereof remaining after the\ndeductions for the portion thereof required to be deposited in the\npermanent maintenance fund and current maintenance fund together with\nthe expenses of sale shall be applied by a cemetery corporation to the\npayment of the purchase price of the real property acquired by it. The\nremainder of such proceeds shall be applied by the corporation to\npreserving, improving and embellishing the cemetery grounds and the\navenues and roads leading thereto, and to defraying its expenses and\ndischarging its liabilities. After the payment of such purchase price,\nand the expense of surveying and laying out the cemetery, all the\nproceeds of such sales shall be applied to the improvement, preservation\nand embellishment of the cemetery and to such expenses and liabilities.\n(2) Where a corporation has agreed with a person from whom any such\nlands were purchased to pay therefor a specified share not exceeding\none-half of the proceeds of sales of lots therein or the use thereof,\nsuch corporation may continue to make payments as so ag
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