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This entry was published on 2024-02-02
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SECTION 1506-D
Additional requirements for merger or consolidation of cemetery corporations in certain circumstances
Not-for-Profit Corporation (NPC) CHAPTER 35, ARTICLE 15
§ 1506-d. Additional requirements for merger or consolidation of
cemetery corporations in certain circumstances. (a) A merger or
consolidation of cemetery corporations may be approved notwithstanding
that the surviving corporation or consolidated corporation will own land
that does not form one continuous tract or that exceeds two hundred
acres in the aggregate, but only with the recommendation of the cemetery
board. The cemeteries proposing such a merger or consolidation shall
first prove to the satisfaction of the cemetery board that:

(1) the plan of merger or consolidation is economically feasible and
financially responsible;

(2) the merger or consolidation does not harm the interests of each
cemetery corporation, their lot owners, the communities in which the
constituent cemeteries are located, or the state;

(3) the surviving or consolidated corporation will have the resources,
ability and commitment of directors and officers to ensure that all the
constituent cemeteries are properly operated and maintained, that they
will not fall into disrepair and dilapidation and become a burden upon
the community, that they will be operated for the mutual benefit of lot
owners, and that they will continue to serve the local communities in
which they are located;

(4) the municipalities which would be required to assume the care and
control of any part of the cemetery if the surviving or consolidated
cemetery corporation were to be abandoned have been notified of the
proposed merger or consolidation; and

(5) the plan of merger or consolidation submitted to the cemetery
board shall include the following:

(i) a description of the financial assets of each constituent cemetery
corporation demonstrating that the surviving or consolidated cemetery
will have sufficient financial resources to operate all locations
subsequent to merger or consolidation;

(ii) a proposal for management of financial assets of the surviving or
consolidated cemetery, including management of trust funds of the
constituent cemeteries;

(iii) a proposal for maintenance, storage and availability of all
corporate and cemetery records of the surviving or consolidated cemetery
including procedures for physical or remote access to such records by
persons entitled to access;

(iv) a proposal for maintenance, storage and availability of all
corporate and cemetery records relating to the constituent cemeteries,
including procedures for physical or remote access to such records by
persons entitled to access;

(v) a plan for maintenance and operation of all locations in an
equitable manner;

(vi) an agreement that contact information for the surviving or
consolidated cemetery will be posted at the entrance to each location of
the surviving or consolidated cemetery and on any website maintained by
it;

(vii) a proposal for the conduct of annual and special lot owner
meetings that permits lot owners who were lot owners of a constituent
cemetery to attend, actively participate in, and vote at such meetings
remotely; and

(viii) a proposal for providing notice to lot owners who were lot
owners of a constituent cemetery of the place, date and hour of the
annual and any special lot owner meetings in compliance with section six
hundred five of this chapter, and that also provides for: notice to be
published in a newspaper located in each county in which any constituent
cemetery was located, and notice to be prominently posted on the
homepage of any website maintained by the surviving or consolidated
cemetery.

(b) In addition to the requirements of section nine hundred three of
this chapter, lot owner approval of the plan of merger or consolidation
must meet these requirements:

(1) Notice of the meeting to lot owners by a constituent cemetery
corporation that will not be a surviving cemetery corporation may not be
served by publication, unless the constituent cemetery demonstrates that
notice by means other than publication would cause undue hardship;

(2) Additional notice of the meeting shall be conspicuously posted at
the cemetery at least sixty days prior to the meeting and shall provide
the name, telephone number and address of a person from whom a copy of
the plan of merger or consolidation may be obtained; and

(3) Additional notice of the meeting, along with the plan of merger or
consolidation or an outline of the material features of the plan, shall
be conspicuously posted, by each constituent corporation, on any website
it maintains or through which it conducts business.

(c) The cemetery board may adopt rules and regulations as are
necessary to carry out the purposes and provisions of this section.