Effective - 28 Aug 2009
436.435. Compliance of contracts entered into prior to effective date — investment of trust property and assets — loans against assets prohibited. — 1. To the extent that any provisions in this chapter which come into effect on August 28, 2009, apply to trusts governed under this chapter which are in existence on August 28, 2009, such trusts shall be in compliance with this chapter no later than July 1, 2010.
2. All property held in a preneed trust, including principal and undistributed income, shall be invested and reinvested by the trustee thereof and shall only be invested and reinvested in investments which have reasonable potential for growth or producing income. Funds in, or belonging to, a preneed trust shall not be invested in any term life insurance product.
3. A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution. A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, has a duty to use those special skills or expertise when investing and managing trust assets.
4. A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances, the purpose of the trust is better served without diversification.
5. In investing and managing trust assets, a trustee shall consider the following as are relevant to the trust:
(1) General economic conditions;
(2) The possible effect of inflation or deflation;
(3) The expected tax consequences of investment decisions or strategies;
(4) The role that each investment or course of action plays within the overall trust portfolio;
(5) The expected total return from income and the appreciation of capital;
(6) Needs for liquidity, regularity of income, and preservation or appreciation of capital.
6. No seller, provider, or preneed agent shall procure or accept a loan against any investment or asset of or belonging to a preneed trust. As of August 29, 2009, no preneed seller, provider, or agent shall use any existing preneed contract as collateral or security pledged for a loan or take preneed funds of any existing preneed contract as a loan or for any purpose other than as authorized by this chapter.
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(L. 2009 S.B. 1)
Structure Missouri Revised Statutes
Title XXVIII - Contracts and Contractual Relations
Chapter 436 - Special Purpose Contracts
Section 436.100 - Definitions.
Section 436.103 - Action for damages or injunction, jurisdiction.
Section 436.105 - Franchisor to have registered agent on file in office of secretary of state.
Section 436.150 - Definitions.
Section 436.157 - Contract for payment of royalties must be in writing, content.
Section 436.159 - Prohibited acts by performing rights society, exception — violations — penalties.
Section 436.163 - Laws applicable only to performing rights societies.
Section 436.215 - Citation of law.
Section 436.218 - Definitions.
Section 436.221 - Director's authority.
Section 436.233 - Sanctioning of certificate of registration, when — complaint procedure.
Section 436.236 - Temporary certificate of registration permitted, when.
Section 436.239 - Application fee — athlete agent fund created — rulemaking authority.
Section 436.248 - Cancellation of contract, when.
Section 436.251 - Records to be retained.
Section 436.254 - Prohibited acts.
Section 436.263 - Violations, penalties.
Section 436.266 - Uniformity considered in applying law.
Section 436.272 - Moneys collected for certain violations to be transferred to general revenue.
Section 436.300 - Private construction work contract payment requirements.
Section 436.303 - Contract provisions — retainage.
Section 436.306 - Security tendered, when.
Section 436.309 - Subcontractor may tender substitute security, when.
Section 436.312 - Substitute security requirements.
Section 436.315 - Withholding of retainage prohibited, when.
Section 436.318 - Release of retainage, payment made.
Section 436.321 - Adjustment in retainage, when.
Section 436.324 - Release of retainage, when.
Section 436.327 - Substantial completion defined.
Section 436.330 - Subcontractor obligations.
Section 436.333 - Unenforceability of contracts entered into after August 28, 2002.
Section 436.336 - Applicability.
Section 436.350 - Definitions.
Section 436.353 - Notice of offer to cure defects by contractor, contents — effect on court actions.
Section 436.362 - Mediation requirements.
Section 436.365 - Law not to restrict or inhibit other remedies or ability to contract.
Section 436.400 - Citation of law — applicability.
Section 436.405 - Definitions.
Section 436.410 - Applicability exceptions.
Section 436.412 - Violations, disciplinary actions authorized — governing law for contracts.
Section 436.415 - Provision of certain services required by provider — seller's duties.
Section 436.430 - Trust-funded preneed contract requirements.
Section 436.440 - Provisions applicable to all preneed trusts.
Section 436.445 - Trustee not to make decisions, when.
Section 436.450 - Insurance-funded preneed contract requirements.
Section 436.455 - Joint account-funded preneed contract requirements.
Section 436.456 - Cancellation of contract, when, procedure.
Section 436.457 - Seller's right to cancel, when, procedure.
Section 436.458 - Alternative provider permitted, when.
Section 436.460 - Seller report to board required, contents — fee — filing of reports.
Section 436.465 - Record-keeping requirements of seller.
Section 436.470 - Complaint procedure — violation, attorney general may file court action.
Section 436.480 - Death or incapacity of purchaser, transfer of rights and remedies, to whom.
Section 436.485 - Violations, penalties.
Section 436.490 - Sale of business assets of provider — report to board required, contents.
Section 436.500 - Sale of business assets by seller, report to board required, contents.
Section 436.505 - Credit life insurance may be offered to purchaser.
Section 436.510 - Seller's failure to make timely payment, effect of — rights of purchaser.