HB-4456, As Passed Senate, June 29, 2011

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4456

     A bill to amend 1915 PA 58, entitled

"An act to provide for the incorporation of cremation companies and

associations; and to impose certain duties upon the department of

commerce,"

by amending section 6 (MCL 456.206).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 6. (1) A corporation shall have the power to acquire land

that is necessary and appropriate for its purposes.

     (2) No mortgage or other lien or encumbrance, shall be

executed upon the lands or buildings of such corporation actually

used for the disposal of the dead as specified in the provisions of

this act. A mortgage or other lien or encumbrance shall not be

executed upon the lands or buildings of a columbarium.

     (3) A mortgage or other lien or encumbrance may be executed on

the land or buildings that are not under or part of a columbarium

if, and only if, the corporation, landlord, mortgagee, or lender

files and maintains in force a corporate surety bond and a cash

bond that are conditioned upon the faithful performance of all

cremations and dispositions of cremated remains contracted for, by,

or on behalf of the corporation that owns the crematorium. The sum

total of the surety bond and cash bond shall not be less than

$100,000.00. The surety bond and cash bond shall be for the benefit

of the state of Michigan to ensure the performance of the cremation

and the disposition of cremated remains contracted for, by, or on

behalf of the corporation that owns the crematorium. If land or

buildings are leased pursuant to this subsection, the duration of

the lease shall be for not less than 5 years.

     Enacting section 1. Section 4 of 1915 PA 58, MCL 456.204, is

repealed.