Section 157.19 - Deposit and investment of care funds and preneed trust funds(1) In this section, "financial institution" has the meaning given in s. 705.01(3), but, except with respect to the deposit of preneed trust funds, also includes a broker-dealer registered under s. 551.401(1) or exempt from registration under s. 551.401(2).(2)(a) Except as provided in sub. (5) and the rules promulgated under sub. (4), the cemetery authority may deposit care funds under s. 157.11(9g), and shall deposit care funds under s. 157.12(3) and preneed trust funds under s. 440.92, with a financial institution located in this state. The financial institution shall be the trustee of the care funds and preneed trust funds. A bank need not comply with s. 221.0316(1) or (2) or ch. 223 to accept or disburse deposits under this section. The trustee shall invest the care funds and preneed trust funds as provided under s. 881.01, except as provided in sub. (5) and the rules promulgated under sub. (4).(b) The cemetery authority may not change the trustee of a care fund under s. 157.11(9g) that is deposited under this section or of a care fund under s. 157.12(3), and the financial institution may not release any portion of the principal amount of the care fund, without the cemetery board's written approval.(c) Upon request of the financial institution, the preneed seller, as defined in s. 440.90(8), shall furnish the financial institution with a copy of the preneed sales contract. Except as provided in s. 440.92(2) (c), (f) and (j) and (5), preneed trust funds, and any interest or dividends that have accumulated on the preneed trust funds, may not be withdrawn until all obligations under the preneed sales contract have been fulfilled. The financial institution is not responsible for the fulfillment of any part of the preneed sales contract, except that the financial institution shall release the preneed trust funds, and any interest or dividends that have accumulated on the preneed trust funds, as provided by the terms of the preneed sales contract. The trustee of a preneed trust fund may not be changed without the cemetery board's written approval. If the trustee or account number of a preneed trust fund is changed, the cemetery authority shall notify the cemetery board in writing within 30 days after the change.(d) The cemetery board shall promulgate rules establishing reasonable requirements and standards for the approval of changes under pars. (b) and (c). For approval of changes under par. (b), the rules shall require the cemetery authority to submit evidence that the rights and interests of the beneficiary of the care fund will be adequately protected if the change is approved. For approval of changes under par. (c), the rules shall require the trustee to submit evidence that the rights and interests of the purchaser under the preneed sales contract will be adequately protected if the change is approved.(4) The cemetery board may promulgate rules allowing funds invested under this section to be deposited with a financial institution located outside this state.(5)(a) This section does not apply to care funds of a cemetery for which a certification under s. 157.63 is effective, to preneed trust funds of a cemetery for which a certification under s. 440.92(9) is effective, or to care funds or preneed trust funds of a cemetery authority that is not required to be licensed under s. 440.91(1) or registered under s. 440.91(1m).(b) If the cemetery board determines that care funds under s. 157.11(9g) are not being properly segregated from other moneys held by the cemetery authority or that those care funds are not being properly invested as required in s. 157.11(9g) (a), the cemetery board may require the cemetery authority to deposit those care funds with a financial institution for investment under this section.(6) Nothing in this section prevents a cemetery authority from combining its care funds and preneed trust funds for investment under this section if the cemetery authority maintains separate accountings for each fund.(7) Except as provided in sub. (5) (a), this section applies to every care fund and every preneed trust fund of a cemetery authority, regardless of when the care fund or preneed trust fund was established.Amended by Acts 2015 ch, 237,s 58, eff. 7/1/2016.Amended by Acts 2015 ch, 237,s 57, eff. 7/1/2016.Amended by Acts 2015 ch, 110,s 1, eff. 11/13/2015.1989 a. 307; 1991 a. 74, 269; 1995 a. 336; 2005 a. 25; 2007 a. 174.