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This entry was published on 2014-09-22
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SECTION 750-R
Endowment care or similar trust funds
General Business (GBS) CHAPTER 20, ARTICLE 35-C
§ 750-r. Endowment care or similar trust funds. 1. A pet cemetery
which commenced operations prior to the effective date of this article
shall establish an endowment care or similar trust fund, the balance of
which shall not be less then twelve thousand dollars, by January first,
nineteen hundred ninety-five. The secretary of state may grant a waiver
to the provisions of this subdivision if an endowment care or similar
trust fund is established and twelve thousand dollars is placed in such
fund within a reasonable amount of time not to exceed ten years from the
effective date of this article and the provisions of this section will
present a significant financial hardship to the pet cemetery owner or
operator.

2. A pet cemetery which commences operations on or after the effective
date of this article, shall, prior to the acceptance of any moneys as
annual maintenance fees, establish an endowment care or similar trust
fund for the permanent operation and maintenance of the pet cemetery, in
an amount of not less than twelve thousand dollars.

3. The fiduciary holding such endowment care or similar trust fund
shall have such power to invest such fund as set forth in section 11-2.2
of the estates, powers and trusts law. The interest earnings of such
trust fund shall be used exclusively for the operation and maintenance
of such pet cemetery. Any distribution of principal of such option and
trust fund shall only be upon order of the supreme court of the county
where the pet cemetery is located, for good cause and exclusively for
the operation and benefit of such pet cemetery. Unless such distribution
of principal shall be as part of a removal of dedication for such pet
cemetery, such order shall additionally make adequate provision for the
permanent maintenance of the pet cemetery.

4. A pet cemetery, owned and operated by a not-for-profit corporation
that has in excess of one million dollars in its endowment care or
similar trust fund, may use any surplus income in such trust fund above
and beyond its costs for pet cemetery operation and maintenance in any
manner allowed by the not-for-profit corporation's charter or by-laws,
provided that the use of such surplus does not endanger the integrity of
such trust fund.

5. A pet cemetery, owned and operated by a not-for-profit corporation
that is a humane society may be granted a waiver of the provisions of
this section by the secretary of state if the secretary determines that
the interests of the pet owners will be adequately protected and the
provisions of this section present a significant financial hardship to
the pet cemetery owner.

6. Such trust funds are not invalid by reason of any indefiniteness or
uncertainty of the persons designated as beneficiaries, nor shall they
be invalid as violating any existing rule against perpetuities.