(1) The seller shall apply for change of ownership or control when:

(a) The seller transfers all or a portion of the interest in any contract for prepaid funeral merchandise or services;

(b) The seller transfers one or more of its establishments for providing funeral merchandise or services;

(c) All or a portion of the equity ownership of a seller has been transferred that will result in a change of:

(i) The sale of more than fifty percent (50%) of the interest of a seller when the seller is a corporation;

(ii) Ownership of a seller when the seller is other than a corporation;

(d) The seller transfers all of its business assets relating to providing funeral merchandise or services; or

(e) The seller terminates its business of providing funeral merchandise or services.

(2) At least fifteen (15) days before the proposed occurrence of an event described in subsection (1) of this section, the seller shall file a verified change of ownership application with the Secretary of State, which shall contain the following:

(a) The name and address of the seller;

(b) The name and address of the organization proposing to acquire property of the seller, hereinafter referred to as the “transferee”;

(c) A description of the property and of the proposed transaction, as set forth in subsection (1) of this section;

(d) An accounting of the trust fund and all outstanding contracts, which accounting shall contain all the information required in the annual report, prepared as of a date within thirty (30) days of the required application filing date;

(e) Any required documents or amendments thereto relating to the trust fund;

(f) A copy of any notice proposed to be sent to the contract buyers after the transfer;

(g) A filing fee of One Hundred Dollars ($100.00); and

(h) Any other information that may reasonably be required by the Secretary of State by rule or order.

(3) The Secretary of State must approve the change in ownership or control. The Secretary of State shall approve the seller’s application for change of ownership by written authorization if:

(a) The transferee set forth in the application holds a valid, current registration under the provisions of this article;

(b) The accounting required is complete, accurate, and reflects the trust fund whole and intact; and

(c) All required information and documents are filed with and approved by the Secretary of State.

(4) The Secretary of State shall have the authority by rule or order to waive or reduce any of the requirements contained in subsection (2) of this section as not being necessary or appropriate in the public interest or for the protection of the contract purchasers.

(5) The seller, or its interest therein, shall remain liable for all funds and transactions to the effective date of the transfer. The buyer shall be liable for all funds and transactions thereafter.

(6) Any shortages in the trust fund due to the failure to properly capitalize the trust in accordance with Section 75-63-59 shall be funded by the preneed seller or new owner before closing. Nothing provided in this section shall alleviate or excuse the purchaser from exercising due diligence in the transaction before closing.