(a) On August 1, 2001, the Arkansas Cemetery Board shall segregate one hundred eighty thousand dollars ($180,000) within its general operating fund to be known as the insolvent cemetery loan fund administered by the Securities Commissioner and only used to lend a court-appointed receiver or conservator the funds necessary to assure that a cemetery will be properly maintained and will continue to be a going concern, including the funds necessary to pay a reasonable surety bond premium that is required to be posted by the court.
(b) The board may take any legal action necessary against a cemetery company, receiver, or conservator to recover funds loaned by the board to or for the benefit of the cemetery, the cemetery company, receiver, or conservator for the payment of maintenance expenses or unpaid loans.
(c) Disbursement from the insolvent cemetery loan fund for loans to a receiver or conservator shall be made on a "first in, first out" basis as determined by the commissioner.
(d) The commissioner may accept donations to the board from any cemetery company, organization, or individual to fund loans under this section.
(e) The board may waive payment or extend the payment period for a loan made to a receiver or conservator if the board determines that it is unlikely that the receiver or conservator has or will receive sufficient funds to repay the loan and that the funds were or are needed to maintain and operate the cemetery for the benefit of the lot owners and the general public.
(f) Any funds that accumulate in the insolvent cemetery loan fund in excess of one hundred eighty thousand dollars ($180,000) may at the request of the board be transferred to the insolvent cemetery grant fund under the Insolvent Cemetery Grant Fund Act, § 20-17-1301 et seq.
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