CHAPTER 534

An Act to amend the Code of Virginia by adding in Chapter 3 of Title 57
an article, numbered 8.1, and containing sections numbered 57-85.1
through 57-35.10, requiring a method of funding endowment trusts
for perpetual care of burial lots by certain cemeteries; prohibiting
certain acts; and providing penalties for violations.

[H 577]

Approved March 31, 1964

Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia be amended by adding in Chapter 3 of
Title 57 an article numbered 3.1, and containing sections numbered 57-35.1
through 57-35.10, as follows:

ARTICLE 3.1

§ 67-35.1. The following terms used in this article, shall, for its
purposes, have the following meanings:

(a) “Cemetery” means any land or structure used or intended to be
used for the interment of human remains.
(b) “Interment” means all forms of final disposal of human remains
including, but not limited to, earth burial, mausoleum entombment and
niche or columbarium inurnment.

(c) “Endowment Care Fund” means a fund created to provide a
sufficient income to a cemetery which will enable such cemetery to provide
care, maintenance, administration and embellishment of such cemetery
adequate to the circumstances. It includes the term ‘“‘Perpetual Care Fund”
and the two terms are used interchangeably.

§ 57-35.2. After the effective date of this article, it shall be unlawful
for any person, firm, association or corporation, hereinafter referred to
as “person”, owning, operating or developing any cemetery to sell or
offer for sale in this State, either as principal or otherwise, any lot,
parcel of land, burial or entombment right in such cemetery, and in
connection therewith to represent to the public in any manner, express
or implied, that the entire cemetery, a single lot therein, or burial or
entombment right therein will be perpetually cared for, unless adequate
provision has been made for the endowment care of the cemetery and all
lots, burial or entombment rights therein as to which such representation
has been made. Each person who shall undertake to develop any such
cemetery after the effective date of this article, shall deposit in a bank in
this State in an irrevocable endowment trust fund a minimum of twenty-
five thousand dollars before the first lot, parcel of land, burial or entom
ment right has been sold.

§ 57-35.8. Each person owning, operating or developing any such
cemetery before or after the effective date of this article shall hereafter
deposit in a bank in this State, or in another State, if such person has,
prior to the effective date hereof, entered into a trust agreement by which
he is required to make at least the minimum deposit required hereunder,
& minimum of ten per centum of the selling price of each lot, interment
right, and above ground crypts and niches, excluding below ground burial
vaults, sold, which amount shall be paid in cash and deposited with the
trustee of the care fund not later than thirty days after the close of the
month in which payments on the sale are completed.

§ 57-35.3:1. In the event ten per centum of the sales price of the
items mentioned in the preceding section have been deposited in a care
fund before or after the effective date of this article, no care fund deposit
shall again be required on subsequent sales of the same lot, crypt or niche.

§ 57-35.4. Whenever such person owning, operating or developing
such cemetery has deposited in the perpetual care fund a sum equal to
twice the amount of the original deposit as provided in § 57-35.2, exclusive
of such original deposit, the trustee shall then allow such person owning,
operating or developing such cemetery to recover the original deposit by
withholding up to twenty-five thousand dollars of the amounts thereafter
due the care fund or until the amount of the original deposit in the care
fund has been recovered.

§ 57-35.5. The trustee of the endowment care fund shall be appointed
by the person owning, operating or developing such cemetery, and shall
be removed only as provided by § 57-35. All trustees, other than banking
institutions operating under the laws of this State or national banks
operating within the State, maintaining a trust department, shall furnish
a fidelity bond with corporate surety thereon, payable to the trust estab-
lished, which shall be designated “Endowment Care Fund (or Perpetual
Care Fund) for (name of cemetery),” in a penal sum equal to not less
than fifty per centum of the value of the principal of the trust estate at
the beginning of each calendar year, which bond shall be deposited with
the commissioner of accounts of the county or city wherein the principal
office of the person owning, operating or developing such cemetery has
its principal place of business, or if such person be a nonresident cor-
poration, then within the county or city in which the cemetery lies; pro-
vided, however, that no trustee who is serving upon the effective date of
this act shall be required to furnish corporate surety as provided herein.

§ 57-35.6. Trustees appointed hereunder shall be governed in their
conduct by the provisions contained generally in Title 26 of the Code of
Virginia, except as provided otherwise herein.

§ 57-35.7. Trustees appointed hereunder shall report within four
months after the close of each fiscal year to the commissioner of accounts
of the county or city wherein the person owning, operating or developing
the cemetery has his principal place of business, or if such person be a
nonresident corporation, then in the county or city within which such
cemetery lies, the following information:

(a) The total amount of principal of endowment care fund held by
the trustee;

(b) The securities in which said endowment care fund is invested
and the amount of cash on hand as of the close of the fiscal period ;

(c) The income received from such endowment care fund during the
preceding fiscal year; and the trustee shall further submit an affidavit
furnished by the person owning, operating or developing the said
cemetery stating that all provisions of this article applicable to such person
have been complied with.

§ 57-35.8. The income from the endowment care fund shall be used
solely and exclusively for the general care, maintenance, administration
and embellishment of the cemetery and shall be applied in such manner
as the person owning, operating or developing such cemetery may from
time to time determine to be for the best interest thereof.

§ 57-35.9. The provisions of this article shall not apply to cemeteries
owned and operated by a county, city or town or by a church, or by a non-
stock corporation not operated for profit.

§ 57-35.10. Violation of any provision contained in this article shall
constitute a misdemeanor and each act or failure to act in violation hereof
shall be a separate offense.