CODE OF VIRGINIA

WHO MAY SERVE AS TRUSTEE OF PRENEED TRUST FUND (§ 54.1-2326)

A. The trustee of the preneed trust fund shall be appointed by the person
owning, operating, or developing a cemetery company. If the trustee is other
than a Virginia trust company or trust subsidiary or a federally insured bank or
savings institution doing business in the Commonwealth, the trustee shall be
approved by the Board.A trustee that is not a Virginia trust company or trust
subsidiary or a federally insured bank or savings institution doing business in
the Commonwealth shall apply to the Board for approval, and the Board shall
approve the trustee when the Board has become satisfied that the applicant:

   1.  Employs and is directed by persons who are qualified by character,
   experience, and financial responsibility to care for and invest the funds of
   others;

   2.  Will perform its duties in a proper and legal manner and that the trust
   funds and interest of the public generally will not be jeopardized; and

   3.  Is authorized to do business in the Commonwealth and has adequate
   facilities to perform its duties as trustee.

B. If the trustee is other than a Virginia trust company or trust subsidiary or
a federally insured bank or savings institution doing business in the
Commonwealth, the trustee shall furnish a fidelity bond with corporate surety
thereon, payable to the trust established, which shall be designated
“Preneed Trust Fund for (name of cemetery company),” in a sum equal
to but not less than 100 percent of the value of the principal of the trust
estate at the beginning of each calendar year, which bond shall be deposited
with the Board.

C. If the trustee is other than a Virginia trust company or trust subsidiary or
a federally insured bank or savings institution doing business in the
Commonwealth, and if it appears that an officer, director or employee of the
trustee is dishonest, incompetent, or reckless in the management of a preneed
trust fund, the Board may bring an action in the appropriate court to remove the
trustee and to impound the property and business of the trustee as may be
reasonably necessary to protect the trust funds.

HISTORY: 1998, cc. 708, 721.