N.Y. General Business Law Section 352-H
Trust funds

Whenever hereafter any person, partnership, corporation, company, trust or association, offers or sells securities described in subdivision one of § 352-E (Real estate syndication offerings)section three hundred fifty-two-e of this article to the public in or from the state of New York, then all moneys received in connection therewith, including deposits or advances therefor, shall continue to be the money of the person making such purchase, deposit or advance, and shall be held in trust by the person, partnership, corporation, company, trust or association offering or selling such securities and shall not be commingled with the personal moneys or become an asset of the person, partnership, corporation, company, trust or association receiving the same, and shall not be subject to attachment, levy or other encumbrance in any action by a third party against such person, partnership, corporation, company, trust or association; and said funds shall remain in trust until actually employed in connection with the consummation of the transaction; and in the event insufficient funds are raised to effectuate the consummation of the transaction, or if the transaction does not result in the acquisition of the real estate, mortgage or lease involved for any reason or reasons, then all moneys so collected less such amounts actually employed in connection with the consummation of the transaction shall be fully returned to the investors. Any provision of any contract or agreement or understanding, whether oral or in writing, whereby a person who so purchases such securities waives any provision of this section is absolutely void. Nothing herein contained shall be deemed to preclude an action against a defaulting investor.

Source: Section 352-H — Trust funds, https://www.­nysenate.­gov/legislation/laws/GBS/352-H (updated Sep. 22, 2014; accessed Dec. 2, 2023).

352
Investigation by attorney-general 352–A
Foreign corporation to make designation 352–B
Non-resident brokers, dealers, salesmen and investment advisors 352–C
Prohibited acts constituting misdemeanor 352–D
Effect of prosecution under previous section 352–E
Real estate syndication offerings 352–EE
Conversion of non-residential property to residential cooperative or condominium ownership 352–EEE
Conversions to cooperative or condominium ownership in certain cities, towns and villages located in the counties of Nassau, Westchester ... 352–EEEE
Conversions to cooperative or condominium ownership in the city of New York 352–F
Description of realty bonds 352–G
Exemptions 352–H
Trust funds 352–I
Injunctive relief 352–J
Application of article 352–K
Broker dealer minimum capital requirements 352–L
Cooperative corporations 353
Action by attorney-general 353–A
Receivers 354
Examination of witnesses and preliminary injunction 355
Procedure on hearing 356
Powers of referee 357
Application of provisions of civil practice law and rules 358
Criminal prosecution 359
Immunity 359–A
Appointment of deputies 359–B
Effect of unconstitutionality of part of article 359–C
Publication of state notices 359–E
Definitions 359–EE
Report of existence 359–EEE
Definitions 359–F
Exemptions from certain provisions of section three hundred fifty-nine-e 359–FF
Registration of intra-state offerings 359–FFF
Chain distributor schemes prohibited 359–G
Violations and penalties 359–H
Destruction of certain records, books and other data by the attorney-general
Green check means up to date. Up to date

Accessed:
Dec. 2, 2023

Last modified:
Sep. 22, 2014

§ 352-H’s source at nysenate​.gov

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