(a) Any cemetery company or seller who, having received any moneys under or in connection with a pre-need sales contract for cemetery merchandise and services, fails to deposit or keep on deposit the moneys as required in this chapter, or who fails to substantially perform the contract described in this chapter, commits a Class E felony.

Attorney's Note

Under the Tennessee Code, punishments for crimes depend on the classification. In the case of this section:
ClassPrisonFine
class E felony1 to 6 yearsup to $3,000
For details, see Tenn. Code § 40-35-111

Terms Used In Tennessee Code 46-1-307

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Cemetery: means any land or structure in this state dedicated to and used, or intended to be used, for interment of human remains. See Tennessee Code 46-1-102
  • Cemetery company: means an individual, partnership, corporation, or association, now or hereafter organized, owning or controlling cemetery lands or property and conducting the business of a cemetery. See Tennessee Code 46-1-102
  • Cemetery merchandise: means personal property sold by a cemetery company, such as foundations, markers, memorials, memorial bases, monuments, urns, vases, and lawn and mausoleum crypts. See Tennessee Code 46-1-102
  • Commissioner: means the commissioner of commerce and insurance. See Tennessee Code 46-1-102
  • 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.
  • Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
  • Pre-need: means the time prior to death when the use of cemetery merchandise or services is not actually required. See Tennessee Code 46-1-102
  • Services: means acts performed by a cemetery company on its premises in the final interment of human remains or the installation of cemetery merchandise used in connection with final interment. See Tennessee Code 46-1-102
  • Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
(b) In addition to other remedies, the commissioner may, upon determining that any deficiency exists in any trust account required under this chapter, order the liquidation of the deficiency upon the terms and conditions that the commissioner determines to be appropriate. If the deficiency has not been liquidated as ordered, the commissioner may bring an action in chancery court to recover the amount of the trust deficiency. Upon finding that a deficiency exists, the court may appoint a receiver to operate the cemetery or, if necessary, order the seizure and sale of the assets of the cemetery company, to the end that the trust be made whole. The court may also award reasonable attorney’s fees for the attorney representing the commissioner in an action brought under this section; provided, that the commissioner may not impose any penalty or bring any action against any person, firm or corporation that purchased a cemetery prior to July 1, 1986, with respect to a deficiency in any trust account required under this chapter related to transactions that occurred prior to July 1, 1986.
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