N.Y. Arts & Cult. Aff. Law § 23.07
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.
N.Y. Arts and Cult. Aff. Law § 23.07