N.Y. General Business Law § 339-d: Transactions by brokers and dealers after insolvency

§ 339-d. Transactions by brokers and dealers after insolvency. Any

person, firm, association or corporation engaged in the business of

purchasing and selling as broker or dealer, stocks, bonds or other

evidences of debt of corporations, companies or associations who,

knowing that he or it is insolvent, accepts or receives from a customer

ignorant of such broker's or dealer's insolvency, money, stocks, bonds

or other evidences of debt belonging to the customer otherwise than in

liquidation of, or as security for, an existing indebtedness, is guilty

of a misdemeanor. Any person, firm, association or corporation shall be

deemed insolvent within the meaning of this section whenever the

aggregate of his or its property shall not, at a fair valuation, be

sufficient in amount to pay his or its debts.