Chapter 68 Oregon Laws 1999
Session Law
AN ACT
SB 138
Relating to endowment care
cemeteries; creating new provisions; and amending ORS 128.412.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
ORS 128.412 is amended to read:
128.412. The provisions of ORS 128.400 to 128.440, 128.990,
128.991, 692.180 and 692.285 shall not include:
(1) Agreements to sell or sales of graves, crypts or niches
where such graves, crypts or niches are in existence at the time of the sale or
agreement to sell and are located in an endowment care cemetery as defined in
ORS 97.810.
(2) Agreements to sell or sales of crypts or niches where such
crypts or niches are not in existence at the time of the sale or agreement to
sell and are to be located in an endowment care cemetery,[;] provided that:
[(a) Thirty-five percent
of the sales price of such crypts or niches is deposited in accordance with the
provisions of ORS 128.415; or]
[(b) Such endowment care
cemetery deposits a bond with a corporate surety authorized to do business in
this state, or an irrevocable letter of credit issued by an insured
institution, as defined in ORS 706.008. The bond or letter of credit shall be
in the amount of $25,000.]
(a) Thirty-five percent
of the sales price of each crypt or niche described in this subsection is
deposited in accordance with the provisions of ORS 128.415; or
(b) Such endowment care
cemetery deposits a bond with a corporate surety authorized to do business in
this state, or an irrevocable letter of credit issued by an insured
institution, as defined in ORS 706.008. The bond or letter of credit shall be
in an amount equal to 35 percent of the total sales price of all crypts or
niches described in this subsection that have been sold by the endowment care
cemetery and that have not yet been completed.
(3) Agreements to sell or sales of burial vaults or markers for
installation in an endowment care cemetery,[;] provided that:
(a) Sixty-six and two-thirds percent of the sale price of such
vaults or markers is deposited in accordance with the provisions of ORS
128.415;
(b) Such endowment care cemetery is at the time of the sale or
agreement to sell and for not less than 24 months before such sale or agreement
has been in continuous operation as an endowment care cemetery and has assumed
the obligation to supply and install the vault or marker and maintain it as
part of its endowment care program; and
(c) Such endowment care cemetery deposits:
(A) A bond with the Secretary of State in the amount of $10,000
with a corporate or personal surety. Such personal surety shall submit a sworn
financial statement as of the date of the bond and annually thereafter as long
as the bond is in effect to insure the availability of the total amount of the
sale price when required; or
(B) An irrevocable letter of credit with the Secretary of State
in the amount of $10,000, issued by an insured institution, as defined in ORS
706.008.
SECTION 2. (1) The amendments to ORS 128.412 by
section 1 of this 1999 Act apply only to agreements to sell crypts or niches
entered into on or after the effective date of this 1999 Act, and sales of
crypts and niches made on or after the effective date of this 1999 Act.
(2) An endowment care
cemetery that deposited a bond or an irrevocable letter of credit under the
provisions of ORS 128.412 (2)(b) (1997 Edition) before the effective date of
this 1999 Act must continue to maintain the bond or irrevocable letter of
credit in the amount provided by ORS 128.412 (2)(b) (1997 Edition) until such
time as all the crypts and niches that were part of the development covered by
the bond or letter of credit are completed. Any endowment care cemetery that
maintains a bond or letter of credit pursuant to this subsection is not
required to maintain a bond or letter of credit in the amount required by ORS
128.412 (2)(b), as amended by section 1 of this 1999 Act, for the purpose of
crypts and niches located in the development covered by the bond or letter of
credit maintained under the provisions of this subsection, but the endowment
care cemetery must maintain a bond or letter of credit in the amount required
by ORS 128.412 (2)(b), as amended by section 1 of this 1999 Act, for sales of,
and agreements to sell, crypts or niches located in any development commenced
on or after the effective date of this 1999 Act.
Approved by the Governor
April 20, 1999
Filed in the office of
Secretary of State April 20, 1999
Effective date October 23,
1999
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