ust fund; financial reports of trustee. 1. Not more than 75 percent of the earnings of such investments, including capital gains, as they accrue and are received, may be disbursed by the trustee to the seller or his designee. The remainder of any earnings must be held by the trustee to establish a reserve for securities valuation until the reserve equals 25 percent of the total trust liabilities. 2. The trustee shall maintain in the trust fund an amount of money equal to 125 percent of the total trust liabilities. 3. If money in the trust fund is invested or reinvested in: (a) Securities which are issued or guaranteed by the United States of America; (b) Bonds of this state or the bonds of any other state; (c) Bonds of counties or municipalities of any state; (d) Deposits in any bank, credit union or savings and loan association that is federally insured or insured by a private insurer approved pursuant to NRS 678.755; or (e) With the written approval of the Commissioner, any investment which would have guaranteed liquidity, then no earnings of those investments, including capital gains, if any, as such earnings accrue and are received, may be disbursed by the trustee to the seller or his designee which would reduce the corpus of the trust fund below 100 percent of the required value of the trust. Earnings in excess of 100 percent of the required value of the trust or 125 percent of the total trust liability, whichever is appropriate, may be distributed annually. 4. Earnings are defined as any sum remaining in the trust fund after deducting costs of administration over and above 100 percent of the required value of the trust. 5. Every trustee handling money in a trust fund pursuant to NRS 689.150 to 689.375, inclusive, shall file with the Commissioner, within 15 days after the first day of each calendar quarter, a financial statement showing the activity of all trusts required to be maintained by any seller and the total market value of each trust as of the first day of the calendar quarter. The statement must be on forms prescribed and adopted by the Commissioner. Every quarterly report must be accompanied by a fee of $10. If the statement is not received by the Commissioner as required, he may, after giving the seller 10 days’ written notice, revoke the seller’s certificate of authority. 6. The trust must be valued quarterly and averaged annually to determine the total value of the trust. If the average market value as of December 31 of each year is below 100 percent of the required value of the trust or 125 percent of the total trust liability, the Commissioner may suspend the seller’s certificate of authority until the deficiency is made up. (Added to NRS by 1971, 1399; A 1987, 1267; 1999, 1551) NRS 689.345 Prepaid contracts: Net purchase price to be available on termination by buyer, estate or heirs. The net purchase price of the preneed contract shall be available to the buyer or his estate or heirs at any time prior to performing the service described in the preneed contract upon written notice to the seller and trustee of the intent of the buyer or his estate or heirs to terminate the preneed contract and withdraw trust funds attributable to the buyer. (Added to NRS by 1971, 1400) NRS 689.355 Prepaid contracts: Termination by buyer. 1. Except as otherwise provided in subsection 2, if the buyer moves to another geographic area beyond the normal facilities of the seller and performers under the prepaid contract, the contract automatically terminates upon the buyer’s written notice to the seller and trustee of his move and of his desire to terminate the contract. The trustee, as soon as reasonably possible after receipt of the notice, shall refund to the buyer all money in the trust fund, including earned interest, held for the buyer’s account. 2. If the contract continues in force and the buyer is not in default thereunder, upon the demise of the contract beneficiary, the contract automatically terminates. Upon termination, the seller shall refund to the buyer or to his representative or estate, or transfer to a substituted performer, if any, all money paid on the contract. (Added to NRS by 1971, 1400; A 1987, 1268; 2001, 2216) NRS 689.365 Prepaid contracts: Termination on insolvency or other inability of seller to perform; distribution of money in trust fund. 1. An executory prepaid contract automatically terminates if the seller or any performer under the contract goes out of business, dies, becomes insolvent or bankrupt, makes an assignment for the benefit of creditors or is otherwise unable to fulfill the obligations under the contract unless, within 30 days after the going out of business, death, insolvency or bankruptcy of the seller, or within any extension of time granted by the Commissioner, the contract is assigned to a holder of a valid seller’s certificate of authority who agrees in writing to accept the liabilities under the contract and agrees to fulfill all obligations set forth therein. 2. Upon any such termination, the money in the trust fund, including earned interest, held by the trustee for the account of the buyer must be distributed by the trustee to the buyer or to a qualified seller or performer assuming the outstanding contractual liabilities, as authorized by the Commissioner. (Added to NRS by 1971, 1400; A 1987, 1268; 2001, 2216) NRS 689.375 Records of seller; examination by Commissioner. 1. Every seller shall keep: (a) Accurate accounts, books and records of all transactions; (b) Copies of all agreements and dates and amounts of payments made and accepted; (c) The names and addresses of the contracting parties; and (d) The persons for whose benefit the payments are accepted and the names of the depositories in which the payments are deposited. 2. The seller shall keep within this State, at the address shown upon the certificate of authority, complete records of all transactions made under his certificate of authority. Those records and the affairs of the seller are subject to audit and examination by the Commissioner at any reasonable time. The seller shall keep such records for not less than 5 years after the completion of all transactions to which they relate. (Added to NRS by 1971, 1401; A 1987, 1269) BURIAL AND CEMETERY SERVICES NRS 689.450 Definitions. As used in NRS 689.450 to 689.595, inclusive, unless the context otherwise requires, the words and terms defined in NRS 689.455 to 689.475, inclusive, have the meanings ascribed to them in those sections. (Added to NRS by 1987, 1251) NRS 689.455 “Burial merchandise” defined. “Burial merchandise” means those items normally supplied by a cemetery authority under a preneed sales agreement, including urns, memorials, scrolls, vases, foundations, bases and other similar merchandise, but does not include the sale of space for interment, entombment or inurnment. (Added to NRS by 1987, 1251) NRS 689.460 “Burial services” defined. “Burial services” means those services normally performed by a cemetery authority under a preneed sales agreement for the opening and closing of graves, crypts and niches, and other services in relation thereto. (Added to NRS by 1987, 1251) NRS 689.465 “Cemetery authority” defined. “Cemetery authority” means any natural person, partnership, corporation, association or cemetery district owning or controlling lands or property for a cemetery and engaged in the operation of a cemetery in this State which provides endowment care or sells burial merchandise or services under prepaid contracts. (Added to NRS by 1987, 1251; A 1993, 2617) NRS 689.470 “Performer” defined. “Performer” means any person designated in the prepaid contract to furnish the burial merchandise and supplies and to perform the services covered by the contract, on the demise of the beneficiar

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