NY S05463

Replaces the net appreciation appropriation standard for permanent maintenance funds and perpetual care funds with a new framework allowing qualified cemetery corporations to appropriate up to four percent of trust principal annually without board objection.

Requires cemetery corporations seeking to appropriate trust principal to adopt a written investment policy complying with article five-A (prudent management of institutional funds act) and provide 60 days advance notice to the cemetery board by certified mail.

Establishes a "safe harbor amount" of up to four percent of fair market value of trust principal (over interest and dividends received) that is deemed prudent automatically; appropriations exceeding this amount require the cemetery board's affirmative approval within 60 days.

Maintains that all trust principal otherwise remains inviolate, except that a supreme court in the cemetery's district may authorize principal use for current maintenance upon application by either the cemetery board or corporation, with court-ordered repayment if sufficient future revenue exists.

Applies the same appropriation framework and requirements to both permanent maintenance funds (section 1507(a)(2)) and perpetual care funds (section 1507(c)(2)).