US Laws, Codes, Statutes & Cases

 
  §  352-h.    Trust  funds.   Whenever hereafter any person, partnership,
  corporation, company, trust or association, offers or  sells  securities
  described  in  subdivision  one  of 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.