§ 2-220 Proof of Compliance with Escrow Account Requirements of State Lien Law.
RCNY § 2-220
(a)As used in this section, the term "financial institution" means a bank, trust company, savings bank, or state or federal savings and loan association located in this state.
(b)Every person who applies for a license or for a renewal for a license to solicit, canvass, sell, perform or obtain a home improvement contract as a contractor on or after June 25, 1996 shall submit with the application for such license a true copy of either: (1) An account statement from a financial institution where the applicant has established an escrow account to comply with the requirements of paragraph (a) of subdivision 4 of § 71-a of the lien law and a notarized statement sworn to by the applicant in which the applicant identifies the account for which the statement is issued by the name and address of the financial institution that holds the account, the name of the account holder, which shall be the same as the name of the applicant, and the account number provided by the financial institution, and the applicant affirms that it is the account that has been established for the purpose of complying with such requirements of the state lien law. The account statement filed with the application shall be a statement issued by the financial institution within the preceding 60 days of the date of the application; or (2) A commitment from a surety company licensed in this state under which such surety company is irrevocably bound to issue to the applicant during the term of the applicant's license a bond or contract of indemnity if the applicant elects to post a bond or contract of indemnity with an owner pursuant to paragraph b of subdivision 4 of § 71-a of the lien law, or a commitment from a financial institution under which such institution is irrevocably bound to issue to the applicant during the term of the applicant's license an irrevocable letter of credit if the applicant elects to furnish a letter of credit to an owner pursuant to paragraph b of subdivision 4 of § 71-a of the lien law.
