| (a) Ownership of assets. (1) No company or association funds may be disbursed for the purpose of purchasing or investing in any asset unless such asset thereby becomes the property of the fund from which the disbursement is made, but this requirement shall not prohibit an unequivocal transfer to the mortuary fund from the expense fund. (2) No company or association may permit any asset belonging to such company or association to be held, registered, or deposited in any name other than that of the fund and company or association owning such asset. (3) Each company or association shall at all times have direct control and supervision over each asset owned by such company or association. (b) Investment of assets. (1) Mortuary funds and expense funds other than surplus funds may be invested only in such securities as are qualified investments for reserve funds of domestic legal
reserve life insurance companies. (2) The expense fund may be invested in such securities as are qualified investments for reserve or surplus funds of domestic legal reserve life insurance companies. (3) All income derived from the investment of mortuary funds shall be placed in the mortuary fund. (4) The income derived from the investment of expense funds may be placed either in the expense fund or in the mortuary fund.
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