N.Y. Arts and Cultural Affairs Law § 23.07

§ 23.07. Records; bank accounts. All moneys raised from the offer and\nsale of syndication interests in a theatrical production company, as\ndefined herein, shall be held in a special bank account in trust until\nactually employed for pre-production or production purposes of the\nparticular theatrical production company or returned to the investor or\ninvestors thereof. All the records of such bank account and bank\ntransactions shall be preserved for at least two years. It shall be\nclearly set forth in writing in an investment agreement and any\nprospectus or circular distributed to each investor in a theatrical\nproduction company, as defined herein, that all moneys raised from the\noffer and sale of syndication interests in a theatrical production\ncompany, as defined herein, shall be held in a special bank account in\ntrust until actually employed for pre-production or production purposes\nof the particular theatrical production company or returned to the\ninvestor or investors thereof. Any provision of any contract or\nagreement or understanding, whether oral or in writing, whereby a person\nwho so purchases an interest in any theatrical production company\nsyndication, as defined herein, waives any provision of this section is\nabsolutely void.\n