New South Wales Consolidated Acts

FUNERAL FUNDS ACT 1979 - SECT 42

42 Transfer of trust funds under pre-paid contracts

(1) Trust funds under pre-paid contracts that are held by a pre-paid funeral fund shall not, either in whole or in part, be transferred to any other pre-paid funeral fund except in pursuance of a scheme confirmed by the Director-General in accordance with subsection (4).

(2) For the purposes of subsection (1), a scheme shall set out the terms of the agreement or deed under which it is proposed to effect the transfer and shall contain such further provisions as are necessary for giving effect to the scheme.

(3) An application for confirmation by the Director-General of any scheme for transfer may be made by or on behalf of any pre-paid funeral fund concerned.

(4) Where an application has been made for the confirmation of a scheme under subsection (1), the Director-General may confirm the scheme, either without modification, or subject to such modifications as the pre-paid funeral funds concerned agree to, or may, with the approval of the Minister, refuse to confirm the scheme.

(5) Where the Director-General refuses to confirm a scheme for transfer under subsection (4), the Director-General shall serve notice of that refusal on the pre-paid funeral fund that applied for that confirmation.

(6) A scheme for transfer does not have any force or effect until confirmed by the Director-General and, when confirmed, shall:

(a) be binding on the pre-paid funeral funds concerned and the parties to the pre-paid contracts in respect of which the transfer is made, and

(b) have effect notwithstanding any provision in those contracts.

(7) The transfer of trust funds under pre-paid contracts pursuant to this section does not affect the trusts upon which those trust funds are held.

(8) The regulations may make provision for or with respect to guidelines to be used by the Director-General in deciding whether to confirm or refuse to confirm a scheme under this section.