§ 352-H — Trust funds

§ 352-h. Trust funds. Whenever hereafter any person, partnership,\ncorporation, company, trust or association, offers or sells securities\ndescribed in subdivision one of section three hundred fifty-two-e of\nthis article to the public in or from the state of New York, then all\nmoneys received in connection therewith, including deposits or advances\ntherefor, shall continue to be the money of the person making such\npurchase, deposit or advance, and shall be held in trust by the person,\npartnership, corporation, company, trust or association offering or\nselling such securities and shall not be commingled with the personal\nmoneys or become an asset of the person, partnership, corporation,\ncompany, trust or association receiving the same, and shall not be\nsubject to attachment, levy or other encumbrance in any action by a\nthird party against such person, partnership, corporation, company,\ntrust or association; and said funds shall remain in trust until\nactually employed in connection with the consummation of the\ntransaction; and in the event insufficient funds are raised to\neffectuate the consummation of the transaction, or if the transaction\ndoes not result in the acquisition of the real estate, mortgage or lease\ninvolved for any reason or reasons, then all moneys so collected less\nsuch amounts actually employed in connection with the consummation of\nthe transaction shall be fully returned to the investors. Any provision\nof any contract or agreement or understanding, whether oral or in\nwriting, whereby a person who so purchases such securities waives any\nprovision of this section is absolutely void. Nothing herein contained\nshall be deemed to preclude an action against a defaulting investor.\n