New York Laws
Article 101 - Licensed Private Career Schools and Certified English as a Second Language Schools
5008 - Trust Accounts.

§ 5008. Trust accounts. 1. If the commissioner determines that a
school has demonstrated a pattern or practice of failing to make tuition
refunds in a timely manner consistent with this article and/or the
school's financial condition may result in the interruption or cessation
of instruction or jeopardize student tuition funds, the commissioner
shall require a school to establish a trust account in a form or manner
which the commissioner shall determine to be appropriate. The assets or
funds contained in the trust account shall be maintained for the sole
and exclusive benefit of the students.

2. In making this determination, the commissioner shall consider the
following factors: the number of refunds not paid by the school in a
timely manner; the number of claims made to, or paid by, the tuition
reimbursement account; a pattern of misconduct which substantially
affects the financial interests of students or the state, potential
liability to the tuition reimbursement account, current assets as
opposed to current liabilities, and such other measures as may be
appropriate.