The State of Oklahoma enacted a new law relating to cemetery merchandise contracts. The new law is labeled HB 1618 and amends the surety bond requirements for pre-paid cemetery merchandise contracts. At the present time, establishments handling such contracts must have a trust fund established or must acquire a surety bond. Under the previous law, the surety bond had to be in a quantity that was no less than the aggregate value of the unsettled liabilities on undelivered prepaid cemetery merchandise contracts. HB 1618 requires the surety bond to be “the full principal amount of the services sold.” HB 1618 became active on July 1st, 2009.
Eric is the Webmaster of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.