National Heritage Corp. v. North Carolina Cemetery Commission
National Heritage Corp. v. North Carolina Cemetery Commission
Opinion of the Court
This appeal requires an interpretation of G.S. 65-66 prior to its amendment in 1979. At that time, the statute, in pertinent part, provided as follows:
Receipts from sale of personal property or services; trust fund; penalties. — (a) It shall be deemed contrary to public policy if any person or legal entity receives, holds, controls or manages funds or proceeds received from the sale of, or from a contract to sell, personal property or services which may be used in a cemetery in connection with the burial of or the commemoration of the memory of a deceased human being, where payments for the same are made either outright or on an installment basis prior to the demise of the person or persons so purchasing them, or for whom they are so purchased, unless such person or legal entity holds, controls or manages said funds, subject to the limitations and regulations prescribed in this section ....
(b) Any cemetery company or other entity entering into a contract for the sale of personal property or services, to be used in a cemetery in connection with disposing of, or commemorating the memory of, a deceased human being wherein the use of the personal property or the furnishing of the services is not immediately requested or required, shall deposit proceeds received on the contract as follows:
(1) Into a trust fund administered by a corporate trustee in accordance with a written trust instrument.
(2) Seventy-five percent (75%) of all proceeds received on such contracts shall be deposited until the amount deposited equals seventy-five percent (75%) of the actual sale price of the property or services so sold.
(3) The deposit herein required shall be made into the trust fund so established on or before the tenth day of the month following receipt by the cemetery company or other entity from the purchaser.
The question posed by this appeal is whether this section of the statute required the plaintiffs to place funds in trust which were received from the sale to finance companies of conditional
We reverse and remand for a judgment consistent with this opinion.
Reversed and remanded.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.