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 The escrow account shall provide that funds deposited therein may be withdrawn by the membership campground operator upon the completion of the proposed construction in the following manner: a. One-third of the funds may be distributed to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.