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Michigan Statutes, Title 328

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Michigan/Statutes

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Title 328, DEAD HUMAN BODIES

9 chapters · 29 sections in this title.

All chapters in Title 32829 Ch 255-of-1986, PREPAID FUNERAL AND CEMETERY SALES ACT25 Ch 70-of-1954, AGREEMENTS FOR DISPOSITION OF DEAD H…4

25 sections·Filtered byTitle 328✕Ch 255-of-1986✕

Mich. Comp. Laws § 328.211 Short title.
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Sec. 1. This act shall be known and may be cited as the “prepaid funeral and cemetery sales act”.
Mich. Comp. Laws § 328.212 Meanings of words and phrases.
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Sec. 2. For the purposes of this act, the words and phrases defined in sections 3 to 5 have the meanings ascribed to them in those sections.
Mich. Comp. Laws § 328.213 Definitions; B to D.
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Sec. 3. As used in this act: (a) “Burial right” means a right of earth interment. (b) “Casket” means any box or container consisting of 1 or more parts in which a dead human body is placed before interment, entombment, or cremation that may or may not be permanently interred, ent…
Mich. Comp. Laws § 328.214 Definitions; D to M.
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Sec. 4. (1) As used in this act: (a) “Depository” means a state or nationally chartered bank or state or federally chartered savings and loan association, savings bank, or credit union whose deposits are insured by an agency of the United States government under the laws of this …

Mich. Comp. Laws § 328.215 Definitions; N to U.

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Sec. 5. As used in this act: (a) “Nonguaranteed price contract” means a prepaid contract under which funds received are held pursuant to an escrow agreement between a contract seller or provider and a contract buyer and are applied to the cost of the merchandise or funeral or cem…

Mich. Comp. Laws § 328.216 Certificate of registration to sell, provide, or agree to provide merchandise or services pursuant to prepaid contract; application; fee; duration of certificate; contents of application form; renewal of registration; sworn statement or special report; expiration of certificate; reinstatement of registration; grounds for denial of registration; compliance; petition for reconsideration; hearing.

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Sec. 6. (1) A person shall not sell, provide, or agree to provide merchandise or funeral or cemetery services pursuant to a prepaid contract unless that person is registered with the department as provided in this section and has received a certificate of registration. (2) A pers…

Mich. Comp. Laws § 328.217 Deposit of funds with escrow agent; agreement to allow inspection and copying of records.

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Sec. 7. A registrant who deposits funds with an escrow agent under this act shall have in effect at all times an agreement under which the escrow agent has, under the following circumstances, agreed to allow inspection and copying of records maintained by it pertaining to funds h…

Mich. Comp. Laws § 328.218 Accounts, books, and records; special report; examination; corrective or penal action; examination, review, or audit of books and records; authorization of escrow agents to open records; statement in lieu of special report.

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Sec. 8. (1) A registrant shall keep, in this state, accurate accounts, books, and records of all transactions and accounts regulated by this act. Records shall include copies of all prepaid contracts, the dates and amounts of payments made and accepted under these prepaid contrac…

Mich. Comp. Laws § 328.219 Notice of purchase or assignment of business operations or prepaid contracts.

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Sec. 9. The purchaser or assignee of a registrant's business operations shall notify the department and the contract buyers of the purchase or assignment of the prepaid contracts.

Mich. Comp. Laws § 328.220 Nonguaranteed or guaranteed price contracts; execution.

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Sec. 10. All prepaid contracts provided for under this act shall be either a nonguaranteed price contract or a guaranteed price contract and shall be made and executed pursuant only to this act.

Mich. Comp. Laws § 328.221 Guaranteed price contract; requirements.

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Sec. 11. (1) A guaranteed price contract shall designate a provider who has agreed to furnish the merchandise or funeral or cemetery services specified in the contract upon the death of the contract beneficiary. If the provider designated is not the prepaid contract seller of the…

Mich. Comp. Laws § 328.222 Funds to be held in escrow by escrow agent; additional commission not subject to depository requirements; commission if contract price paid in installments; refund; qualifications and selection of escrow agent; authorized investments; fees and expenses; commingling; separate accounting of principal and income; notice to contract buyer; disbursement of funds; nonprofit corporation or association as escrow agent; furnishing statement to contract buyer.

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Sec. 12. (1) Except as otherwise provided in subsection (2), all funds received in connection with a prepaid contract shall be held in escrow by an escrow agent for the benefit of the contract beneficiary. (2) Funds received by a cemetery registered under the cemetery regulation …

Mich. Comp. Laws § 328.223 Cancellation of prepaid contract by contract buyer; notice; disbursement of principal and income; cancellation of contract by contract seller or provider; failure to use escrow account to make funeral arrangements; assignment or transfer of obligations.

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Sec. 13. (1) A contract buyer may cancel a prepaid contract at any time before the death of the contract beneficiary upon 30 days' prior written notice to the contract seller of a nonguaranteed price contract or to the provider designated to furnish merchandise or funeral or ceme…

Mich. Comp. Laws § 328.224 Liability for principal and income; investment of funds; changing escrow agent or depository.

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Sec. 14. (1) Payments of principal and income by a depository or an escrow agent made in good faith pursuant to the terms of this act shall relieve that depository or escrow agent of any further liability for that principal and income. (2) An escrow agent shall invest funds held …

Mich. Comp. Laws § 328.225 Prices or quotations of prices; requirements; exception; manipulation of prices prohibited; provision for revocation of contract; refund; disclosure of right to cancel contract and amount of refund; disclosure of commissions; services requiring mortuary science license or funeral establishment license; construction of act; designation of new contract beneficiary; notice; clear indication of nonguaranteed price contract, actual costs, and obligations.

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Sec. 15. (1) All prices or quotations of prices contained in a prepaid contract, offer, or solicitation shall be stated in compliance with applicable federal and state laws and regulations. In addition, a person who offers either merchandise or funeral or cemetery services on a p…

Mich. Comp. Laws § 328.226 Prepaid funeral contract not in writing as voidable; agreement as to rate of interest; interest added or deducted in advance; computation of interest; financing of contract.

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Sec. 16. (1) A prepaid contract that is not in writing is voidable by any party to the prepaid contract. (2) A prepaid contract made in violation of this act or with a person who is not registered pursuant to section 6 is voidable by the contract buyer or by a personal representa…

Mich. Comp. Laws § 328.227 Rules generally.

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Sec. 17. The department may promulgate rules pursuant to the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being sections 24.201 to 24.328 of the Michigan Compiled Laws, to implement this act.

Mich. Comp. Laws § 328.228 Prohibited conduct; rules; administrative action.

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Sec. 18. (1) Notwithstanding any other law to the contrary, a person selling or offering to sell merchandise or funeral or cemetery services, whether a registrant or not, shall not do any of the following: (a) Solicit a specific person for the purpose of providing merchandise or …

Mich. Comp. Laws § 328.229 Irrevocable prepaid contract approved by family independence agency or department of community health; rules.

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Sec. 19. (1) A prepaid contract may be made with an applicant for or recipient of assistance under the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b, or a patient or a legal guardian of a patient in a community health care facility under the jurisdiction of the departmen…

Mich. Comp. Laws § 328.230 Complaint; investigation; examination of books, records, contracts, and other documents; duties of department on determination of reasonable cause to believe in occurrence of violation; violation; hearing; duties of department on determination of violation.

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Sec. 20. (1) Upon complaint made by any person, or upon its own initiative, the department may investigate alleged violations of this act or rules promulgated under this act by a registrant or any other person. The department may examine books, records, contracts, and other docum…

Mich. Comp. Laws § 328.231 Violations; penalties.

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Sec. 21. A violation of this act by a person who is licensed under article 18 of the occupational code, 1980 PA 299, MCL 339.1801 to 339.1812, or the cemetery regulation act, 1968 PA 251, MCL 456.521 to 456.543, is considered a violation of the respective licensing act, and the v…

Mich. Comp. Laws § 328.232 Conversion of funds as felony; violation as misdemeanor; penalties.

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Sec. 22. (1) A person who converts funds paid pursuant to a prepaid contract to his or her own use or benefit other than as authorized by this act or who fails to escrow or trust funds according to this act is guilty of a felony punishable by a fine of $5,000.00 or imprisonment o…

Mich. Comp. Laws § 328.233 Noncompliance with investment and depositing requirements; petition for appointment of receiver; notice; hearing; liquidation.

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Sec. 23. If the department determines that a registrant has not complied with the investment and depositing requirements of this act and that insufficient funds are available in trust or escrow accounts to meet the obligations of prepaid contracts, the department may petition the…

Mich. Comp. Laws § 328.234 Action to force compliance; damages; orders.

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Sec. 24. The department or any other person, in order to force compliance with this act, may bring an action in a circuit court in any county in which the registrant or any other person has solicited or sold prepaid contracts, whether or not that person has purchased a prepaid co…

Mich. Comp. Laws § 328.235 Effective date.

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Sec. 25. This act shall take effect on July 1, 1987.