N.Y. General Business Law 740 – Escrow required for advance payments
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§ 740. Escrow required for advance payments. All monies paid by a consumer to an automobile broker business in connection with a transaction covered by this article shall be trust funds in the possession of such automobile broker business and shall be deposited by it within five days after receipt thereof, in an account in a banking organization within the state. The automobile broker business shall thereupon notify in writing the consumer, giving the name and address of the banking organization and the amount deposited. The monies shall be held on deposit until fully applied to the contract price at the time the automobile is delivered to the consumer, unless sooner repaid in accordance with the provisions of this article.
Terms Used In N.Y. General Business Law 740
- Automobile broker business: means any person who, for a fee, commission or other valuable consideration, regardless of whether such fee, commission, or consideration is paid directly by a consumer, offers to provide, provides, or represents that he or she will provide a service of purchasing, arranging, assisting, facilitating or effecting the purchase or lease of an automobile as agent, broker, or intermediary for a consumer. See N.Y. General Business Law 736
- Consumer: means a natural person who is solicited to purchase or who purchases the services of an automobile broker business. See N.Y. General Business Law 736
- Contract: A legal written agreement that becomes binding when signed.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.