N.Y. General Business Law § 657: Escrow

§ 657. Escrow. 1. All monies, except dues, paid under a membership

camping contract that is sold under a representation that a major

capital improvement shall be constructed shall be placed in escrow.

2. All such funds received by a membership campground operator shall

be kept and maintained in an interest bearing account separate and apart

from any account maintained by or for the operator's personal use or the

use and the construction or operation of the campground or for the

payment or benefit of employees of the campground.

3. The escrow account shall be established in a bank or trust company

doing business in the state of New York.

4. The escrow account shall provide that the purpose of the account is

to protect the purchaser in the event that the operator fails to

substantially complete and make available for use the major capital

improvement within one year following establishment of the account.

5. Any purchaser who has advanced monies on deposit in the escrow

account may maintain a representative action pursuant to the provisions

of the civil practice law and rules to close the account and release

such monies and interest, pro rata, to all purchasers similarly

situated, if the major capital improvement has not been substantially

completed and made available for use within one year of the

establishment of the account or if the purchaser has not had the full

use of another similar facility during such period.

6. So long as any such escrow account shall remain in existence,

within five business days of a request therefor, a monthly statement of

the escrow account is to be furnished to all purchasers who have

advanced funds which are held in the account, provided that only one

such statement need be given each month.

7. The escrow account shall provide that funds deposited therein may

be withdrawn by the membership campground operator upon the completion

of the proposed construction in the following manner:

a. One-third of the funds may be distributed to the membership

campground operator upon completion of one-half of the proposed

construction;

b. Two-thirds of the fund may be released upon completion of

three-fourths of the proposed construction; and

c. The balance of the fund may be distributed upon completion of all

of the proposed construction.

8. The escrow agent may accept as evidence of partial or full

completion of such major capital improvement, the certification by any

architect or engineer licensed pursuant to the provisions of the

education law or the laws of the state in which the campground is

located, that the proposed construction has been completed in accordance

with the plans and specifications.

9. The escrow account shall be released by the escrow agent to the

membership campground operator not more than thirty days following

completion of instruction and the submission to the escrow agent of a

certification from an architect or engineer that construction is

complete.

10. In lieu of making such deposit of monies in escrow, the membership

campground operator may post a bond or contract of indemnity issued by a

surety company licensed to execute such an instrument, or an irrevocable

letter of credit issued by a bank to guarantee the completion of the

major capital improvement.