BILL NUMBER: S4392
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the not-for-profit corporation law, in relation to
retiring cemetery indebtedness
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would permit a state regulated cemetery to retire any certif-
icates or other instruments of indebtedness it has issued related to its
operations, to the benefit of the cemetery's permanent maintenance fund,
to support the long term operations of the non-profit entities.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of this bill adds a new Section 1511-g to the Not-for-Profit
Corporation Law to provide the process for notification and retirement
of cemetery indebtedness.
The legislation provides at least sixty days' notice to any last known
certificate holder that that has not claimed any proceeds for a minimum
of three years before the certificates would be retired and any proceeds
would go to the permanent maintenance fund of the cemetery.
The bill provides for records of the transaction and the payment to any
claimant that might come forward at a later date to be reimbursed for
the value of the certificates or other instrument at the time of its
retirement.
Section 2 of the bill states that this act shall take effect immediate-
ly.
 
JUSTIFICATION:
This bill would address cases where cemetery issued debt remains
outstanding due to the significant age of the financial instruments.
Regulated cemeteries in New York are quasi-government entities that must
continue to operate in perpetuity. This bill would provide a mechanism
and notification process for a cemetery to retire their in-house debt
while also sending any proceeds from the debt retirement to the ceme-
tery's restricted permanent maintenance fund. This fund is devoted to
the long-term preservation and maintenance of the cemetery for the bene-
fit of the lot owners and community the cemetery serves.
 
PRIOR LEGISLATIVE:
2024: S5784A Comrie/ A9447A Hyndman
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
Immediately.