Arkansas Code
Subchapter 10 - Cemetery Act for Perpetually Maintained Cemeteries
§ 20-17-1016. Permanent maintenance fund — Required deposits

(a) Unless a greater amount is established by rule of the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services, a cemetery company shall deposit into its permanent maintenance fund a sum not less than:
(1) Twenty percent (20%) of the gross proceeds from the sale of a lot or grave space in its cemetery; and
(2) Five percent (5%) of the gross proceeds from the sale of a mausoleum crypt, lawn crypt, niche, or other similar entombment in its cemetery.

(b)
(1) The deposit shall be made by the cemetery company not later than forty-five (45) days after the final payment has been made.
(2) However, any cemetery company making sales on installment sales contracts shall deposit the required percentage in accordance with the following:
(A) If the cemetery company receives installment payments directly and if adequate records are maintained as to the full amount of sale, the receipts received, and the balance due, then the cemetery company shall deposit the required percentage of gross proceeds of sale into the permanent maintenance fund not later than the forty-fifth day after the final payment is made, or the cemetery company may deposit the required percentage of each amount received not later than the forty-fifth day after each installment payment by the purchaser; and
(B)
(i) If the cemetery company elects to discount the installment sales contracts at a bank or other financial institution and receive a discounted value immediately in cash, the required percentage of the gross sales price shall be placed in a separate restricted escrow account at the time that the contract is discounted.
(ii) The amount so placed in escrow shall not be withdrawn until the lot purchaser defaults on or fully satisfies his or her contract obligations.
(iii) This restricted escrow account may be used by the bank or other financial institution as a part of its required reserve and may be used as recourse if the lot purchaser defaults on the contract.
(iv) Upon default, the required percentage of the gross sales price which was placed in this escrow account may be withdrawn and used by the cemetery company.
(v) Once final payment has been made, the required percentage of the gross sales price that was placed in an escrow account shall be withdrawn and placed into the permanent maintenance fund within five (5) business days.
(vi) If the cemetery corporation enters into an agreement with the bank or other financial institution, which in the Insurance Commissioner's determination adequately provides for the safeguards set forth in subdivision (b)(2)(A) of this section, then subdivision (b)(2)(A) of this section is not applicable to the cemetery corporation.

(3) If a cemetery company gives away a grave space or sells a grave space for a price less than the current market price, the gross sales proceeds received for a similar grave space in the immediately adjacent or similar location in the cemetery in a recent arms-length transaction shall be used as the basis to make the required permanent maintenance fund contribution for the gift or reduced price sale.

(c)
(1) If the cemetery company fails to make the required deposits in accordance with this section or if the moneys placed in escrow are not deposited as required by this subchapter, then the cemetery company shall be liable for and the board may collect as an additional contribution to the permanent maintenance fund ten dollars ($10.00) per day but in no instance in amounts to exceed five thousand dollars ($5,000) or the actual cost of the contract property or cemetery lots, whichever is greater, for the period of the failure.
(2) Upon the refusal of the cemetery company to pay the board the penalty, the board may institute suit to recover the contribution and costs and such other relief as the state in its judgment deems proper and necessary.