Tex. Health & Safety Code Section 712.021
Establishment and Purposes of Fund


(a)

Except as provided by Subsection (h), a corporation that operates a perpetual care cemetery in this state shall have a fund established with a trust company or a bank with trust powers that is located in this state. The trust company or bank may not have more than one director who is also a director of the corporation.

(b)

Except as otherwise provided by this chapter, the principal of the fund may not be reduced voluntarily, and it must remain inviolable. The trustee shall maintain the principal of the fund separate from all operating funds of the corporation.

(c)

In establishing a fund, the corporation may adopt plans for the general care, maintenance, and embellishment of its perpetual care cemetery.

(d)

The fund and the trustee are governed by the Texas Trust Code (Section 111.001 (Short Title) et seq., Property Code).

(e)

A corporation that establishes a fund may receive and hold for the fund and as a part of the fund or as an incident to the fund any property contributed to the fund.

(f)

The fund and contributions to the fund are for charitable purposes. The perpetual care financed by the fund is:

(1)

the discharge of a duty due from the corporation to persons interred and to be interred in its perpetual care cemetery; and

(2)

for the benefit and protection of the public by preserving and keeping the perpetual care cemetery from becoming a place of disorder, reproach, and desolation in the community in which the perpetual care cemetery is located.

(g)

In this subsection, “master trust account” means an account containing the perpetual care trust funds of two or more certificate holders for the purpose of collective investment and administration. The trustors of two or more perpetual care trust funds may establish a master trust account in which deposits required by this chapter are made, provided that separate records of principal and income are maintained for each perpetual care cemetery for the benefit of which the master trust account is established, and further provided that the income attributable to each perpetual care cemetery is used only for the perpetual care of that cemetery.

(h)

A corporation may apply to the commissioner for temporary relief and placement of a perpetual care trust fund in a segregated interest bearing account at a Texas financial institution, as defined by Section 201.101 (Definitions), Finance Code, if the corporation:

(1)

has been operating a perpetual care cemetery in this state for at least two years; and

(2)

has a perpetual care trust fund with a balance of less than $100,000, the income of which is insufficient to pay trustee fees.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1993, 73rd Leg., ch. 634, Sec. 31, eff. Sept. 1, 1993.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 19 (S.B. 656), Sec. 2, eff. May 15, 2015.
Acts 2017, 85th Leg., R.S., Ch. 71 (S.B. 1402), Sec. 4, eff. September 1, 2017.
Acts 2017, 85th Leg., R.S., Ch. 1051 (H.B. 1948), Sec. 3, eff. September 1, 2017.
Acts 2019, 86th Leg., R.S., Ch. 864 (H.B. 2950), Sec. 1, eff. September 1, 2019.

Source: Section 712.021 — Establishment and Purposes of Fund, https://statutes.­capitol.­texas.­gov/Docs/HS/htm/HS.­712.­htm#712.­021 (accessed Jun. 5, 2024).

712.001
Definitions
712.002
Exemptions from Chapter
712.003
Registration Required
712.004
Perpetual Care Trust Fund Required
712.005
Cancellation of Charter for Failure to Begin Operation of Perpetual Care Cemetery
712.007
Notice of Perpetual Care Required
712.008
Rules
712.009
Limitations on Burials
712.020
Conflict with Other Law
712.021
Establishment and Purposes of Fund
712.022
Operation of Perpetual Care Cemetery
712.023
Validity of Contributions
712.024
Amendment of Trust Instrument
712.025
Use of Fund Distributions
712.026
Suit by Plot Owners to Maintain Perpetual Care
712.027
Investment of Fund
712.028
Amount of Fund Deposits from Sales
712.029
Accounting for and Depositing Amounts
712.030
Use of Gift for Special Care of Plot in Perpetual Care Cemetery
712.0032
Certificate of Authority Requirement
712.0033
Certificate of Authority Application
712.0034
Qualifications for Certificate of Authority
712.0035
Issuance of Certificate of Authority
712.0036
Term of Certificate of Authority
712.0037
Renewal of Certificate of Authority
712.0038
Transfer or Assignment Prohibited
712.0039
Transfer of Business Ownership
712.041
Annual Statement of Funds
712.042
Fees
712.043
Additional Fund Report
712.044
Examination of Records
712.045
Revocation or Suspension of Certificate of Authority
712.048
Criminal Penalties
712.061
Offer and Sale of Undeveloped Mausoleum Space
712.062
Deposits to Fund
712.063
Preconstruction Trust
712.064
Construction
712.065
Release of Trust Funds to Corporation
712.066
Contract Disclosures
712.067
Bond in Lieu of Preconstruction Trust
712.068
Reports
712.0255
Judicial Modification or Termination of Fund
712.0351
Definitions
712.0352
Modification of Distribution Method
712.0353
Determination of Fair Market Value
712.0354
Determination of Total Return Percentage
712.0355
Regulatory Limits on Distributions
712.0356
Rules
712.0357
Nature of Total Return Distributions
712.00395
Surrender of Certificate of Authority
712.0435
Investigations
712.0441
Enforcement
712.0442
Pattern of Wilful Disregard
712.0443
Cease and Desist Order
712.0444
Emergency Order
712.0445
Receivership Proceedings

Accessed:
Jun. 5, 2024

§ 712.021’s source at texas​.gov