N.Y. Not-for-Profit Corporation Law 1506-A – Cemetery corporations; restrictions
§ 1506-a. Cemetery corporations; restrictions.
Terms Used In N.Y. Not-for-Profit Corporation Law 1506-A
- cemetery corporation: means any corporation formed under a general or special law for the disposal or burial of deceased human beings, by cremation, natural organic reduction or in a grave, mausoleum, vault, columbarium or other receptacle but does not include a family cemetery corporation or a private cemetery corporation. See N.Y. Not-for-Profit Corporation Law 1502
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(a) No cemetery corporation shall, directly or indirectly:
(1) sell, or have, enter into or perform a lease of any of its real property to a funeral entity, or use any of its property for location of a funeral entity;
(2) commingle its funds with a funeral entity;
(3) direct or carry on its business or affairs with a funeral entity;
(4) authorize control of its business or affairs by a funeral entity;
(5) engage in any sale or cross-marketing of goods or services with a funeral entity;
(6) have or enter into or perform a management or service contract for cemetery operations with a funeral entity; or
(7) have, enter into or perform a management contract with any entity other than a not-for-profit cemetery corporation; provided, however, that a not-for-profit cemetery corporation may enter into or perform a management contract with a private cemetery corporation for the operational management of a mausoleum or columbarium by such private cemetery corporation provided such contract shall have first been authorized by the board of the not-for-profit cemetery corporation.
(b) Only the provisions of subdivisions one and two of paragraph (a) of this section shall apply to cemetery corporations with thirty acres or less of real property dedicated to cemetery purposes, and only to the extent the sale or lease is of real property dedicated to cemetery purposes, and such cemeteries shall not engage in the sale of funeral home goods or services, except if such goods and services are otherwise permitted to be sold by cemeteries, nor shall a majority of the members of the board of directors or trustees of such cemeteries be made up of the representatives of a funeral entity.
(c) For the purposes of this section, "funeral entity" means a person, partnership, corporation, limited liability company or other form of business organization providing funeral home services, or owning, controlling, conducting or affiliated with a funeral home, any subsidiary thereof or an officer, director or stockholder having a ten per centum or greater proprietary, beneficial, equitable or credit interest in a funeral home.