NEW YORK STATE GENERAL BUSINESS LAW MANDATES THE FOLLOWING FOR PRE-FINANCING OF FUNERALS

Moneys paid in connection with agreements for funeral goods or services in advance of need to be kept on deposit pending use or repayment. Any and all moneys paid to a funeral director, undertaker, cemetery or any other person, firm, or corporation, under or in connection with an agreement for the sale of personal property to be used in connection with a funeral or burial, or for the furnishing of personal services of a funeral director or undertaker, wherein the personal property is not to be delivered or the personal services are not to be rendered until the occurrence of the death of the person for whose funeral or burial such property or services are to be furnished shall be trust funds in the possession of such funeral director, undertaker, cemetery, or other person, firm or corporation, and shall be deposited by him or it within thirty days after receipt thereof, in a special account maintained exclusively for the deposit of such moneys in a bank or trust company in which funds may be deposited by a fiduciary under section twenty-one of the personal property law, and shall be so held on deposit together with any interest thereon, until said personal property has been delivered and said personal services have been rendered, unless sooner repaid, in whole or in part.

The amount of any and all moneys paid under or in connection with such an agreement, together with interest, if any, accrued thereon while on deposit as so required shall be repaid on demand at any time prior to the delivery of the personal property or the rendering of the personal services.

Any provision of any such agreement whereby a person who pays money under or in connection therewith waives any provision of this section shall be void.

Any person, firm or corporation who or which, having received any moneys under or in connection with such an agreement, shall fail to deposit or keep on deposit or to repay any and all such moneys as provided in this section, shall be guilty of a misdemeanor.

This section shall not apply to the sale of lots or graves by a cemetery.