§ 23.07. Records; bank accounts. All moneys raised from the offer and sale of syndication interests in a theatrical production company, as defined herein, shall be held in a special bank account in trust until actually employed for pre-production or production purposes of the particular theatrical production company or returned to the investor or investors thereof. All the records of such bank account and bank transactions shall be preserved for at least two years. It shall be clearly set forth in writing in an investment agreement and any prospectus or circular distributed to each investor in a theatrical production company, as defined herein, that all moneys raised from the offer and sale of syndication interests in a theatrical production company, as defined herein, shall be held in a special bank account in trust until actually employed for pre-production or production purposes of the particular theatrical production company or returned to the investor or investors thereof. Any provision of any contract or agreement or understanding, whether oral or in writing, whereby a person who so purchases an interest in any theatrical production company syndication, as defined herein, waives any provision of this section is absolutely void.

Terms Used In N.Y. Arts and Cultural Affairs Law 23.07

  • Contract: A legal written agreement that becomes binding when signed.
  • person: shall mean an individual, firm, company, partnership, corporation, trust or association. See N.Y. Arts and Cultural Affairs Law 23.03
  • Syndication: shall mean all forms, methods and devices for pooling of investment funds for the chief purpose of participating in a theatrical production company, as defined herein. See N.Y. Arts and Cultural Affairs Law 23.03
  • theatrical production: shall mean those live-staged dramatic productions, dramatic-musical productions and concerts, as defined in this subdivision, which hereafter are shown to the public for profit and which are financed wholly or in part by the offering or sale in or from this state, directly, or through agents or distributors, of investment agreements, evidences of interest, limited partnerships, producer shares, equity or debt securities, pre-organization subscriptions or any other syndication participation, when any persons are offered, solicited to purchase or sell, directly or indirectly, such syndication interests for moneys or services within or from the state of New York; provided, however, that for purposes of paragraphs (h) and (i) of this subdivision a "theatrical production" shall mean any live-staged dramatic production, dramatic-musical production or concert which is presented to the public in a place of entertainment as defined in this subdivision. See N.Y. Arts and Cultural Affairs Law 23.03
  • theatrical production company: shall mean any entity formed to (i) develop, produce, invest in or otherwise exploit, or any combination thereof, one or more specified or nonspecified theatrical productions, and (ii) conduct all activities related thereto. See N.Y. Arts and Cultural Affairs Law 23.03
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