A-23.001, r. 1 - Regulation respecting the application of the Act respecting arrangements for funeral services and sepultures

Updated to 1 September 2012

This document has official status.

chapter A-23.001, r. 1

Regulation respecting the application of the Act respecting prearranged funeral services and sepultures

Act respecting prearranged funeral services and sepultures

(chapter A-23.001, s. 81).

CHAPTER I FORM OF WRITINGS

1. A contract referred to in sections 7 and 8 of the Act respecting prearranged funeral services and sepultures (chapter A-23.001) may be handwritten, typed or printed.

Such contract must be drawn up on Number 7 Bond paper weighing 11.8 kg per thousand 432 mm by 559 mm sheets or on a higher quality paper.

If the contract is drawn up on both sides of the pages, the front side of each sheet must include the following words at the bottom of the page in capital letters of at least 14-point typeface and set off in a rectangle as follows:

                                       ______________
                                      |              |
                                      | SEE OVERLEAF |  
                                      |______________|

Any violation of the second or third paragraph is an offence and the seller is liable to the penalty prescribed in section 65 of the Act.

O.C. 81-88, s. 1.

2. If a contract referred to in section 1 is typed, it must be in characters of at least 10 points.

Any violation of the first paragraph is an offence and the seller is liable to the penalty prescribed in section 65 of the Act.

O.C. 81-88, s. 2.

3. If a contract referred to in section 1 is printed:

(a)  unless otherwise provided in this Regulation, any information prescribed in section 4 or 5 must be set in typeface equivalent to TIMES MEDIUM of at least 12 points with 13-point spacing between lines;

(b)  all printed numerals must be set in typeface equivalent to TIMES BOLD of at least 12 points with 13-point spacing between lines;

(c)  the rest of the contract, including the expression “If the contract was solicited, negotiated or made elsewhere than at the establishment of the seller:” and “If the contract was solicited, negotiated or made at the establishment of the seller:” where they occur as information prescribed in section 4 or 5, must be printed in typeface equivalent to TIMES BOLD of at least 12 points with 13-point spacing between lines;

(d)  only roman or italic characters may be used;

(e)  it must be printed in black or dark red ink.

Any violation of subparagraph a, b, c, d or e is an offence and the seller is liable to the penalty prescribed in section 65 of the Act.

O.C. 81-88, s. 3.

CHAPTER II REQUIRED INFORMATION

4. A prearranged funeral services contract must contain the following information:

“Information required under the Act respecting prearranged funeral services and sepultures.

Prearranged funeral services contract

(1)  Within 10 days after the contract is made, the seller must, except where he is exempted from doing so by the buyer in writing, forward a copy of the contract to a person designated by the buyer so that that person may be informed of the existence of the contract.

(2)  The contract may be terminated in the following manner:

If the contract was solicited, negotiated or made elsewhere than at the establishment of the seller:

(A) It may be terminated without cost or penalty within 30 days from the time when the buyer receives his copy of the contract. Cancellation may be made in either of the following ways:

i.  by returning to the seller or his representative, after having completed and signed it, the form entitled “cancellation form” which must be attached to the copy of the contract;

or

ii.  by sending to the seller or his representative a notice in writing of intent to terminate the contract.

(B) After the 30 days have elapsed, the contract may be terminated subject to a penalty. In such a case, the buyer will receive the capital indexed to the cost of living, less 10% of the price of goods and services not provided. Cancellation is made by forwarding to the seller or his representative a notice in writing of intent to terminate the contract.

OR

If the contract was solicited, negotiated or made at the establishment of the seller:

It may be terminated at any time subject to a penalty. In such a case, the buyer will receive the capital indexed to the cost of living, less 10% of the price of the goods and services not provided. Cancellation is made by forwarding to the seller or his representative a notice in writing of intent to terminate the contract.

(3)  The collection of a payment and the providing of an item of goods or a service by the seller are subject to the following rules:

If the contract was solicited, negotiated or made elsewhere than at the establishment of the seller:

(A) The seller may not collect total or partial payment before 30 days have elapsed from the time when the buyer receives his copy of the contract. Furthermore, he may not provide goods or services before the 30 days have elapsed.

(B) After the 30 days have elapsed, the seller may collect payments and provide goods and services.

OR

If the contract was solicited, negotiated or made at the establishment of the seller:

The seller may collect payments from the signing of the contract and he may also provide goods and services.

(4)  The seller must, within 45 days following the collection of a payment, deposit in trust with a depositary (a bank, credit union, trust company or other financial institution) any amount that he collects as total or partial payment of a contract, except an amount representing 10% or less of the price of goods and services which have not been provided. The seller is not bound to deposit an amount paid by the buyer for goods or services provided before the 45 days have elapsed.

(5)  The depositary must inform the buyer in writing of the amount and the date of other first deposit in trust made for him by the seller. That notice must be forwarded to the buyer within 30 days following that first deposit.

(6)  The seller may not stipulate in a contract an index adjustment clause or any other clause intended to allow him to increase the price of the goods or services under the contract.

(7)  The seller must make available to the public, at all times and in each of his establishments, an up-to-date list of the prices of each item of goods and each service that he offers.

This contract is governed by the Act respecting prearranged funeral services and sepultures (chapter A-23.001).”.

O.C. 81-88, s. 4.

5. A prepurchased sepulture contract must contain the following information:

“Information required under the Act respecting prearranged funeral services and sepultures.

Prepurchased sepulture contract

(1)  Within 10 days after the contract is made, the seller must, except where he is exempted from doing so by the buyer in writing, forward a copy of the contract to a person designated by the buyer so that that person may be informed of the existence of the contract.

(2)  The contract may be terminated in the following manner:

If the contract was solicited, negotiated or made elsewhere than at the establishment of the seller:

(A) The buyer may terminate the contract without cost or penalty within 30 days from the time when the buyer receives his copy of the contract. Cancellation may be made in either of the following ways:

i.  by returning to the seller or his representative, after having completed and signed it, the form entitled “cancellation form” which must be attached to the copy of the contract;

or

ii.  by sending to the seller or his representative a notice in writing of intent to terminate the contract.

(B) After the 30 days have elapsed, the contract may be terminated only by the consent of the parties, after discussion and agreement with the seller.

OR

If the contract was solicited, negotiated or made at the establishment of the seller:

The contract may be terminated only by the consent of the parties, after discussion and agreement with the seller.

(3)  The collection of a payment by the seller is subject to the following rules:

If the contract was solicited, negotiated or made elsewhere than at the establishment of the seller:

(A) The seller may not collect total or partial payment before 30 days have elapsed from the time when the buyer receives his copy of the contract. Furthermore, he may not provide goods or services before the 30 days have elapsed.

(B) After the 30 days have elapsed, the seller may collect payments and provide goods and services.

OR

If the contract was solicited, negotiated or made at the establishment of the seller:

The seller may collect payments from the signing of the contract and he may also provide goods and services.

(4)  If the particulars by means of which the sepulture can be located are not specified in the contract or if that sepulture is not available at the time when the contract is made, the seller must, within 45 days following the collection of amounts of money, deposit those amounts in a trust account with a depositary (a bank, credit union, trust company or other financial institution). The depositary must inform the buyer in writing of the amount and the date of the first deposit in trust made for him by the seller. That notice must be forwarded to the buyer within 30 days following that first deposit.

(5)  Where the particulars by means of which the sepulture can be located are determined only after the first deposit of money in trust or where that sepulture became available only after that deposit, the seller must send to the buyer a notice informing him of the particulars by means of which the sepulture can be located and indicating that it is available. That notice must also indicate the contract number and the price of the sepulture.

(6)  The seller may not stipulate in a contract an index adjustment clause or any other clause intended to allow him to increase the price of the goods or services under the contract.

(7)  The seller must make available to the public, at all times and in each of his establishments, an up-to-date list of the prices of each item of goods and each service that he offers.

This contract is governed by the Act respecting prearranged funeral services and sepultures (chapter A-23.001).”.

O.C. 81-88, s. 5.

CHAPTER III RETENTION OF DOCUMENTS

6. The depositary must retain the documents produced under section 31 of the Act for a period of 5 years from the date of their production.

O.C. 81-88, s. 6.

CHAPTER IV DEPOSIT OF THE AMOUNTS REFERRED TO IN SECTION 86 OF THE ACT

7. The seller must, within 60 days following the coming into force of the Act, deposit in trust with a depositary the amounts referred to in section 86 of the Act.

Where the depositary chosen by the seller is not the financial institution with which the amounts referred to in section 86 of the Act had been deposited and where those amounts had been deposited in a term deposit, the seller must, within the time prescribed in the first paragraph, give to the financial institution where those amounts had been deposited irrevocable instructions in writing to forward them to the depositary at the maturity of the deposit or when it is cashed before maturity, as the case may be.

The seller must, within the time prescribed in the first paragraph, forward to the depositary a copy of the instructions referred to in the second paragraph.

O.C. 81-88, s. 7.

CHAPTER V TRANSFER BETWEEN TWO DEPOSITARIES

8. The depositary with which the funds held in trust referred to in section 25 of the Act or the amounts referred to in section 86 of the Act have been deposited may not transfer them before having received from the depositary to which those funds or amounts will be transferred a copy of the undertaking prescribed in section 20 of the Act.

O.C. 81-88, s. 8.

9. The depositary with which the funds held in trust referred to in section 25 of the Act or the amounts referred to in section 86 of the Act have been deposited must, at the time of a transfer, forward to the depositary to which those funds or amounts will be transferred a document indicating the name, address and contract number of each of the buyers, as well as a copy of the account prescribed in the first paragraph of section 33 of the Act.

The depositary with which the funds referred to in section 25 of the Act have been deposited must also, at the time of a transfer, forward to the depositary to which the funds will be transferred any information necessary for the computation required by section 27 of the Act.

O.C. 81-88, s. 9.

10. The funds held in trust referred to in section 25 of the Act or the amounts referred to in section 86 of the Act must be transferred in a single operation.

O.C. 81-88, s. 10.

CHAPTER VI EXEMPTIONS

O.C. 601-92, s. 1.

11. A religious authority that is a party to a prearranged funeral services contract the sole purpose of which is the celebration of a religious service by that authority, is exempt from the application of the Act.

O.C. 81-88, s. 11; O.C. 601-92, s. 1.

12. A seller is exempt from the obligation of having sworn the declaration referred to in paragraph 6 of section 31 of the Act, if he produces at the same time as that declaration:

(a)  a copy of the contract pursuant to which the amounts that are the subject of his request for withdrawal were deposited; and

(b)  a written statement attesting that the goods and services were provided; the statement must be signed by the liquidator of the succession or the deceased person’s next of kin with whom details of the execution of the contract were settled.

O.C. 601-92, s. 1.

REFERENCES

O.C. 81-88, 1988 G.O. 2, 940

O.C. 601-92, 1992 G.O. 2, 2523

S.Q. 1992, c. 57, s. 423

S.Q. 1999, c. 40, s. 23