Section 32Sec./Art. 32

Terms and Conditions of a Trust Fund. - A trust fund must be established separately for each type of pre-need plan with the trust department of a trust company, bank or investment house doing business in the Philippines. No trust fund shall be established by a pre-need company with an affiliate trust entity subject to Section 38 hereof.

The trust agreement shall be submitted to the Commission for approval before execution and shall contain the following salient provisions, among others:

(a) The manner in which the trust fund is to be operated;

(b) Investment powers of the trustee with respect to trust deposits, including the character and kind of investment;

(c) Auditing and settlement of accounts of the trustee with respect to the trust fund;

(d) Basis upon which the trust fund may be terminated;

(e) Provisions for withdrawals from the trust fund;

(f) That the trustee shall submit to the power of the Commission to examine and verify the trust fund;

(g) An undertaking by the trustee that it shall abide by the rules and regulations of the Commission with respect to the trust fund; and

(h) An undertaking by the trustee that it shall submit such other data or information as may be prescribed by the Commission.