PRESUMPTION OF ABANDONMENT

(a) Money paid by a purchaser of a prepaid funeral benefits contract is personal property subject to presumption of abandonment and delivery to the comptroller under Title 6, Property Code. This subchapter controls in case of conflict with that title. (b) Money paid by a purchaser of a prepaid funeral benefits contract and held in the name of the seller at a depository under Subchapter F is presumed abandoned if: (1) the amount due the seller from the purchaser under the contract has been collected and: (A) the seller has not known the existence and location of the purchaser or the beneficiary of the contract for the three preceding years; (B) according to the knowledge and records of the seller, a claim to the money or contract has not been asserted or an act of ownership of the money or contract has not been exercised during the three preceding years; (C) at least 60 years have elapsed since the date the purchaser executed the contract; and (D) at least 90 years have elapsed since the date of birth of the beneficiary of the contract; or (2) the amount due the seller from the purchaser under the contract has not been paid and during the three preceding years: (A) the purchaser has not made a payment to the seller under the contract; (B) the seller has not known the existence and location of the purchaser or the beneficiary of the contract; and (C) according to the knowledge and records of the seller, a claim to the money or contract has not been asserted and an act of ownership of the money or contract has not been exercised. (c) For purposes of Title 6, Property Code, the seller of the contract for which money is presumed abandoned under Subsection (b) is the holder of the money, and the purchaser or the beneficiary of the contract is the owner of the money. (d) The presumption of abandonment provided by Subsection (b) does not apply to: (1) money retained by the seller to cover selling expenses, service costs, and general overhead, as provided by Section 154.252; and (2) earnings attributable to money paid by the purchaser under the contract.