(a) The principal of the perpetual care fund shall be invested and in no event reduced. Only so much of the income of the fund shall be paid to the cemetery authority as it, by submission of vouchers, can reasonably show to be necessary to cover the cost of perpetual care of the cemetery, including reasonable administrative expenses incurred in connection therewith; provided that a reserve may be created from which principal losses may be replaced by setting aside a reasonable percentage of surplus income, if any, or net capital gains from investments, and a reserve may also be set aside out of surplus income or net capital gains for future maintenance, repair, or restoration of property or embellishments in the cemetery, which may be necessary or desirable as a result of wear, deterioration, accident, damage, or destruction. “Net capital gains” means the amount by which the cumulative capital gains since the establishment of the perpetual care fund exceeds the sum of cumulative capital losses since the establishment of the fund. Any surplus income or net capital gains not so set aside in reserve shall become a part of the principal of the fund.

Terms Used In Hawaii Revised Statutes 441-39

  • Cemetery: means any property, or part interest therein, dedicated to and used or intended to be used for the permanent interment of human remains. See Hawaii Revised Statutes 441-1
  • Contract: A legal written agreement that becomes binding when signed.
  • Funeral services: means arranging for or providing for pick up of human remains, embalming, placing the same on display, or otherwise providing for final disposition of human remains. See Hawaii Revised Statutes 441-1
  • Interment: means the disposition of human remains by cremation and inurnment, entombment, or burial in a place used, or intended to be used, and dedicated for cemetery purposes. See Hawaii Revised Statutes 441-1
  • Perpetual care fund: means a fund separately maintained to provide for the perpetual care of a cemetery in conformity with this chapter. See Hawaii Revised Statutes 441-1
  • Pre-need funeral authority: means any person who is engaged in the business of selling pre-need funeral services, or holds money in trust to provide for future funeral services; provided that this shall not apply to the designated trustee of the funds. See Hawaii Revised Statutes 441-1
  • Pre-need trust: means a fund separately maintained to provide for the future services agreed to or contracted for by the pre-need funeral service plan participant or the pre-need interment service plan participant. See Hawaii Revised Statutes 441-1
  • Trustee: means a bank or a trust company, authorized to transact such business in the State, or a board of trustees appointed by the governing body of the cemetery and pre-need funeral authority, designated as trustee pursuant to a written trust agreement under the terms of this chapter for the funds deposited by an authority. See Hawaii Revised Statutes 441-1
  • Trustee: A person or institution holding and administering property in trust.
(b) The principal of the pre-need trust shall be invested and shall not be diminished or withdrawn except in payment of the pre-need interment or pre-need funeral services contracted for and provided to the deceased purchaser or designee or for the contractual refund to the purchaser. The cemetery or pre-need funeral authority shall submit to the trustee a certified statement that the purchaser or an assignee of the purchaser has received the pre-need services under contract with the authority in order for the principal to be withdrawn. In the case of refund to the purchaser, the authority shall submit to the trustee a certified statement that the purchaser desires a refund. A reserve may be created from which principal losses may be replaced by setting aside a reasonable percentage of surplus income, if any, or net capital gains from investments.

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