La. Rev. Stat. § 8:465
This is the official text of La. Rev. Stat. § 8:465, part of Louisiana’s Rev. Stat — part of the compiled statutory law of Louisiana, published by the state as "Rev. Stat." Browse the sections below, each linked to its official government source.
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Order requiring reinvestment in compliance with law; actions for preservation and protection
Official statutory text
A. All funds held in trust for perpetual care purposes shall be administered by the trustee in compliance with this Chapter and the Louisiana Trust Code with such skill and care as a person of ordinary prudence, discretion, and intelligence would exercise in the management of his own affairs, not in regard to speculation but in regard to the permanent disposition of his funds, considering the probable income as well as the probable safety of his capital, subject to the following restrictions:
(1) No such funds shall, directly or indirectly, be loaned to or invested with any of the following:
(a) Any officer, director, or employee of the cemetery authority.
(b) Any trustee of the funds.
(c) Anyone related by blood, adoption, or marriage to any individuals included in Subparagraphs (a) and (b) of this Paragraph.
(d) The cemetery authority itself.
(e) Any business entity of which a controlling interest is held, directly or indirectly, by any of the foregoing persons or legal entities.
(f) Any other cemetery authority, or mortuary or funeral establishment.
(2) An affidavit from the borrower that, to the best of the borrower's knowledge and belief, the subject loan is not in violation of these restrictions, shall suffice to establish for the trustee a conclusive presumption that such is the case.
(3) It shall be prohibited for:
(a) An endowment or perpetual care trust to make one or more loans to any person or entity the cumulative value of which would constitute more than twenty-five percent of the total investment portfolio of the lending care fund, or to have more than two-thirds of the total assets of such funds invested in loans as described in Subparagraph (4)(h) of this Subsection.
(b) Any person or entity listed in Paragraph (A)(1) of this Section to pay or receive a commission, bonus, rebate, or other thing of value in connection with the loan or investment of such funds.
(4) Investment of such funds shall only be made in any of the following:
(a) Bonds, certificates, notes, or other evidences of indebtedness of the United States, or of the state of Louisiana.
(b) General obligations of any state or political subdivision of a state.
(c) Debentures issued by land banks and federal intermediate credit banks and debentures issued by banks for cooperatives.
(d) The bonds, certificates, notes, and other evidence of indebtedness of any municipality, parish, road, drainage, subdrainage, sewerage, gravity drainage, or school district, or of any authorized public board or commission of Louisiana.
(e) Paving certificates issued by any municipality in Louisiana.
(f) Any other form of security as permitted by R.S. 8:454.
(g) Repealed by Acts 2004, No. 68, §2.
(h) Loans secured by a mortgage or mortgages on improved immovable property situated exclusively in this state for not more than an aggregate of seventy-five percent of the appraised value of the property and for a term amortized over a period not exceeding thirty years, and unless otherwise provided by regulation of the Louisiana Cemetery Board shall bear interest at not less than the maximum rate permitted at the time of investment by the Federal Housing Administration for loans to be insured.
(5) Whenever any of the funds of an endowment or perpetual care trust are invested in or secured by a mortgage or whenever such a mortgage represents part of the assets of such a fund, the trustee shall retain in its own or constructive custody and furnish the cemetery authority with the following documents:
(a) The face and reverse side of the mortgage note or notes.
(b) A certified copy of the mortgage and of any corporate resolution or power of attorney authorizing its execution, and evidencing the recordation thereof.
(c) A copy of a survey of the property and its improvements.
this Title.
(4) Taken action or failed to take action to preserve and protect the endowment or perpetual care funds, evidencing a lack of concern therefor.
(5) Become financially irresponsible or transferred control of the cemetery authority to any person who, or business entity which, is financially irresponsible.
(6) Become in danger of insolvency or has gone into bankruptcy or receivership.
(7) Taken any action in violation of this Title or failed to take action required by this Title or has failed to comply with lawful rules, regulations, and orders of the board.
D. Whenever the board, by a vote of the majority of its members, has determined that due to a violation of this Chapter, endowment or perpetual care funds are in danger of being lost or dissipated during the time required for notice and hearing, it may immediately apply to the district court of the parish in which the cemetery is located for any order which appears necessary for the preservation and protection of endowment or perpetual care funds, including but not limited to immediate substitution of trustees. Notwithstanding any other provisions of law, if the board fails to prove that, due to a violation of this Chapter, endowment or perpetual care funds were in danger of being lost or dissipated, it shall be responsible for paying all reasonable costs, legal and accounting fees, and expenses incurred by the cemetery authority or responsible party who was accused of not being in compliance.
Acts 1974, No. 417, §1; Acts 1980, No. 428, §1; Acts 1983, No. 525, §1; Acts 2001, No. 468, §1; Acts 2004, No. 68, §§1, 2; Acts 2022, No. 574, §1; Acts 2023, No. 381, §1.
(1) No such funds shall, directly or indirectly, be loaned to or invested with any of the following:
(a) Any officer, director, or employee of the cemetery authority.
(b) Any trustee of the funds.
(c) Anyone related by blood, adoption, or marriage to any individuals included in Subparagraphs (a) and (b) of this Paragraph.
(d) The cemetery authority itself.
(e) Any business entity of which a controlling interest is held, directly or indirectly, by any of the foregoing persons or legal entities.
(f) Any other cemetery authority, or mortuary or funeral establishment.
(2) An affidavit from the borrower that, to the best of the borrower's knowledge and belief, the subject loan is not in violation of these restrictions, shall suffice to establish for the trustee a conclusive presumption that such is the case.
(3) It shall be prohibited for:
(a) An endowment or perpetual care trust to make one or more loans to any person or entity the cumulative value of which would constitute more than twenty-five percent of the total investment portfolio of the lending care fund, or to have more than two-thirds of the total assets of such funds invested in loans as described in Subparagraph (4)(h) of this Subsection.
(b) Any person or entity listed in Paragraph (A)(1) of this Section to pay or receive a commission, bonus, rebate, or other thing of value in connection with the loan or investment of such funds.
(4) Investment of such funds shall only be made in any of the following:
(a) Bonds, certificates, notes, or other evidences of indebtedness of the United States, or of the state of Louisiana.
(b) General obligations of any state or political subdivision of a state.
(c) Debentures issued by land banks and federal intermediate credit banks and debentures issued by banks for cooperatives.
(d) The bonds, certificates, notes, and other evidence of indebtedness of any municipality, parish, road, drainage, subdrainage, sewerage, gravity drainage, or school district, or of any authorized public board or commission of Louisiana.
(e) Paving certificates issued by any municipality in Louisiana.
(f) Any other form of security as permitted by R.S. 8:454.
(g) Repealed by Acts 2004, No. 68, §2.
(h) Loans secured by a mortgage or mortgages on improved immovable property situated exclusively in this state for not more than an aggregate of seventy-five percent of the appraised value of the property and for a term amortized over a period not exceeding thirty years, and unless otherwise provided by regulation of the Louisiana Cemetery Board shall bear interest at not less than the maximum rate permitted at the time of investment by the Federal Housing Administration for loans to be insured.
(5) Whenever any of the funds of an endowment or perpetual care trust are invested in or secured by a mortgage or whenever such a mortgage represents part of the assets of such a fund, the trustee shall retain in its own or constructive custody and furnish the cemetery authority with the following documents:
(a) The face and reverse side of the mortgage note or notes.
(b) A certified copy of the mortgage and of any corporate resolution or power of attorney authorizing its execution, and evidencing the recordation thereof.
(c) A copy of a survey of the property and its improvements.
this Title.
(4) Taken action or failed to take action to preserve and protect the endowment or perpetual care funds, evidencing a lack of concern therefor.
(5) Become financially irresponsible or transferred control of the cemetery authority to any person who, or business entity which, is financially irresponsible.
(6) Become in danger of insolvency or has gone into bankruptcy or receivership.
(7) Taken any action in violation of this Title or failed to take action required by this Title or has failed to comply with lawful rules, regulations, and orders of the board.
D. Whenever the board, by a vote of the majority of its members, has determined that due to a violation of this Chapter, endowment or perpetual care funds are in danger of being lost or dissipated during the time required for notice and hearing, it may immediately apply to the district court of the parish in which the cemetery is located for any order which appears necessary for the preservation and protection of endowment or perpetual care funds, including but not limited to immediate substitution of trustees. Notwithstanding any other provisions of law, if the board fails to prove that, due to a violation of this Chapter, endowment or perpetual care funds were in danger of being lost or dissipated, it shall be responsible for paying all reasonable costs, legal and accounting fees, and expenses incurred by the cemetery authority or responsible party who was accused of not being in compliance.
Acts 1974, No. 417, §1; Acts 1980, No. 428, §1; Acts 1983, No. 525, §1; Acts 2001, No. 468, §1; Acts 2004, No. 68, §§1, 2; Acts 2022, No. 574, §1; Acts 2023, No. 381, §1.
Status: in_force · Read it on the official government site
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