pital 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 40 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 has 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 689.450 to 689.595, 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 for the fourth quarter must be a summary of all transactions involving the account. 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 permit. 6. The trust must be valued quarterly and averaged annually to determine the total value of the trust. If the average market value of the trust 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 permit until the deficiency is made up. (Added to NRS by 1987, 1257; A 1993, 2620; 1999, 1551) NRS 689.570 Prepaid contracts: Distributions from corpus of trust fund. 1. The corpus of all money deposited in the burial merchandise and service trust fund must be kept unimpaired until the prepaid contract is performed on the death of the person for whose benefit the contract was made, or the contract is otherwise terminated and distribution or disposition of money in the trust fund is made as authorized in accordance with applicable law and the rights of interested persons. 2. Upon receiving a certified copy of a death certificate or a certification by the cemetery authority that a particular prepaid contract has been fully performed, the trustee of the burial merchandise and service trust fund shall pay all money in the trust fund for that contract to the cemetery authority. 3. The trustee shall not make any payments out of the trust fund unless he receives a death certificate or certification as provided in subsection 2. In paying out money in such circumstances, the trustee may rely upon all such death certificates and certifications presented to him which appear valid on their faces, and he is not liable to any person for paying out money upon such reliance. (Added to NRS by 1987, 1258) NRS 689.575 Prepaid contracts: Termination by buyer. 1. Except as otherwise provided in subsection 2, if the buyer moves to another geographic area beyond the normal service facilities of the seller and performers under the prepaid burial merchandise and service 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, including earned interest, in the trust fund 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 buyer, the contract automatically terminates. Upon termination, the seller shall: (a) Furnish the merchandise and perform or arrange to perform the services; (b) Make arrangements for the fulfillment of the agreement on a dollar-for-dollar basis with another performer serving the area to which the buyer has moved; or (c) Refund to the buyer or his representative or estate, or transfer to a substituted performer, all money, including earned interest, in the trust fund held for the buyer’s account. 3. The cemetery authority shall include a provision in each prepaid contract substantially stating: “If the purchaser defaults in making any payment under this contract, the cemetery authority may terminate the contract and is entitled to retain as damages not more than 40 percent of the total purchase price. The balance remaining, if any, must be refunded to the purchaser.” (Added to NRS by 1987, 1258; A 2001, 2217) NRS 689.580 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 the successors or assignees of the business agree to accept all liability and to fulfill all obligations as originally set forth in the contract. 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 1987, 1259; A 2001, 2217) NRS 689.585 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 his permit, complete records of all transactions under the permit. Those records and the affairs of the seller are subject to audit and examination by the Commissioner at any reasonable time. Any costs incurred by the Commissioner to conduct an audit or examination must be paid by the seller. 3. 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 1987, 1259; A 1993, 2621) NRS 689.590 Exemption of person maintaining cemetery but not operating as cemetery on July 5, 1971. The provisions of NRS 689.450 to 689.595, inclusive, do not apply to a person maintaining a cemetery but not operating as a cemetery authority on July 5, 1971. (Added to NRS by 1987, 1259) NRS 689.595 Applicability of other provisions to agents and sellers. 1. T

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