Interpretation

1  In this regulation:

"Act" means the Cemetery and Funeral Services Act;

"plan" means a preneed cemetery services plan or a prearranged funeral services plan;

"seller" means an operator or funeral provider who offers for sale or sells a plan.

 Form of plan

2  Every plan must contain a statement of

(a) the goods and services to be supplied,

(b) the charges to be paid by the purchaser and any adjustments to those charges, including any bonuses, discounts, interest or service charges,

(c) the rights of the purchaser or the personal representative of the purchaser to cancel the plan and receive a refund, including the portion of the purchase price that will be refunded, and

(d) the arrangements that will be made by the seller to hold in trust money paid by the purchaser until

(i)  the cemetery services or funeral services have been provided in accordance with the plan, or

(ii)  the money has been refunded to the purchaser or the personal representative of the purchaser.

[am. B.C. Reg. 47/2001, App. 1, s. 1.]

 Trust funds

3  (1)  Subject to subsection (2), the seller of a plan must, for the purpose of holding the money payable under the plan,

(a) open and maintain with a savings institution a separate account for each plan,

(b) deposit into the account referred to in paragraph (a), within one banking day after receipt, all money received in relation to a plan less selling expenses the seller is entitled, under the Act, to retain, and

(c) retain in the account referred to in paragraph (a) all interest received in relation to the money in that account.

(2)  For the purpose of holding in trust the money received under a plan, the seller must transfer the money referred to in subsection (1) (a), within 21 days after receipt, to a savings institution to be held in accordance with a trust agreement that provides that the savings institution must

(a) subject to maintaining a suitable cash balance, invest the money, together with any other money received from that seller, in Trustee Act securities, at least half of which are redeemable within one year and all of which are redeemable within 5 years,

(b) apply the interest earned on the money first to the payment of its fees and expenses and then to the credit of the account of the purchaser represented by the fund, and

(c) only pay out the trust money in accordance with section 105 (3) of the Act.

[am. B.C. Reg. 47/2001, App. 1, ss. 1 and 2.]

 Reports and statements

4  (1)  Every seller must file with the registrar, within 120 days after the end of its fiscal year, a report for that fiscal year in respect of the matters required by subsection (2).

(2)  The report must be submitted by the seller on the appropriate forms available from the registrar, and must

(a) provide information in respect of each plan including, but not limited to, the name and address of purchaser, date of contract, total sale price, amounts received or held at the beginning of the fiscal year, amounts received during the fiscal year, amounts placed in trust, interest credited to amounts in trust, amounts paid out, balance at end of the fiscal year and investment account number,

(b) be certified as complete and accurate by the seller, and

(c) where required by the registrar, be certified by an auditor.

(3)  A savings institution that is holding trust money in accordance with the requirements of section 3 (2) must file with the registrar, on an annual basis, a statement of

(a) details of all money held by the savings institution on behalf of the seller at the beginning and end of the seller's fiscal year,

(b) transactions during the year with respect to the trust money, and

(c) the fees and expenses of the savings institution in regard to the administration of those trusts.

[am. B.C. Reg. 47/2001, App. 1, ss. 1 and 3.]

 Assignment of plans

5  (1)  A seller must not assign a plan, or the funds obtained under a plan, without the prior written approval of the registrar.

(2)  A seller may apply, in writing, to the registrar for his approval to assign a plan by stating

(a) the name and address of the assignee,

(b) the reason for the assignment,

(c) the name and address of the trustee of the funds paid by each purchaser of a plan that will be assigned and the amount of those funds, including any accumulated interest,

(d) the name and address of the purchaser of each plan that will be assigned and the date of purchase of that plan, and

(e) whether or not the purchaser of each plan that will be assigned has consented to that assignment.

(3)  A seller who is applying for approval to assign a plan must submit with his application

(a) a copy of the proposed assignment agreement, and

(b) if available, the most recent financial statements of the assignee.

(4)  An assignment agreement must include

(a) a list of all of the plans that are being assigned, and

(b) a provision that the assignee agrees to be bound by the terms and conditions of the plans being assigned.

(5)  This regulation applies to the assignee of a plan as if he were the original seller of the plan.

[am. B.C. Reg. 47/2001, App. 1, ss. 1 and 4.]

 Exemption

6  Section 105 of the Act does not apply to the cemetery, mausoleum and columbarium operated by the Roman Catholic Archbishop of Vancouver under the name of Gardens of Gethsemani that continues to be the trustee of preneed cemetery services plan funds received by it and held in a manner satisfactory to the registrar.