N.Y. Arts and Cultural Affairs Law § 23.07: Records; bank accounts

§ 23.07. Records; bank accounts. All moneys raised from the offer and

sale of syndication interests in a theatrical production company, as

defined herein, shall be held in a special bank account in trust until

actually employed for pre-production or production purposes of the

particular theatrical production company or returned to the investor or

investors thereof. All the records of such bank account and bank

transactions shall be preserved for at least two years. It shall be

clearly set forth in writing in an investment agreement and any

prospectus or circular distributed to each investor in a theatrical

production company, as defined herein, that all moneys raised from the

offer and sale of syndication interests in a theatrical production

company, as defined herein, shall be held in a special bank account in

trust until actually employed for pre-production or production purposes

of the particular theatrical production company or returned to the

investor or investors thereof. Any provision of any contract or

agreement or understanding, whether oral or in writing, whereby a person

who so purchases an interest in any theatrical production company

syndication, as defined herein, waives any provision of this section is

absolutely void.