Section 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  be withdrawn by the membership campground operator upon  the  completion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.