2006 New York Code - Trust Accounts.

 
    § 5008. Trust  accounts.    1.  If  the commissioner determines that a
  school has demonstrated a pattern or practice of failing to make tuition
  refunds  in  a  timely  manner  consistent  with   this   article,   the
  commissioner  shall  require  a school to establish a trust account in a
  form or manner which  the  commissioner,  after  consultation  with  the
  advisory  council,  shall  prescribe in regulations. The assets or funds
  contained in the trust account shall be  maintained  for  the  sole  and
  exclusive benefit of the students.
    2.  In  making this determination, the commissioner shall consider the
  following factors: the number of refunds not paid by  the  school  in  a
  timely  manner;  the  number  of claims made to, or paid by, the tuition
  reimbursement fund; and a  pattern  of  misconduct  which  substantially
  affects the financial interests of students or the state.