5008 - Trust accounts. - New York Statutes

§ 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, the commissioner shall require a school to establish a trust account in a form or manner which the commissioner, after consultation with the advisory council, shall prescribe in regulations. 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 fund; and a pattern of misconduct which substantially affects the financial interests of students or the state.