§ 71-a. Further trust of funds received or receivable by owner under\nexecutory contract for the sale and improvement of real property. 1. As\nused in this section,\n (a) A "contract of sale" is an executory contract for the sale of real\nproperty and the improvement thereof by the construction of a building\nthereon.\n (b) "Advances" include funds received by the owner and his rights of\naction for payment thereof.\n 2. (a) Advances made by or on behalf of a vendee of real property to\nthe owner under or pursuant to a contract of sale shall constitute\nassets of a trust, as defined in this section, of which the owner is\ntrustee, notwithstanding that such advances may also be assets of a\ntrust defined in section seventy of this chapter.\n (b) Such advances shall be held and applied by the owner for the\npayment of the cost of improvement. The trust claims defined in\nsubdivision three (a) of section seventy-one of this chapter shall have\npriority over trust claims which the vendee has under the further trust\nprovided in this section. Advances shall cease to be subject to the\nfurther trust provided in this section after they have been applied by\nthe owner for payment of the cost of improvement, provided that no part\nof the advances shall be applied or be deemed applied for payment of the\ncost of improvement until all trust assets, as defined in subdivisions\nfive (a) to five (f), inclusive, of section seventy of this chapter,\nwhich have been received by the owner from all other sources, have been\nexhausted.\n (c) Such advances, or any portion thereof remaining after application\nof such advances for payment of the cost of improvement, shall continue\nto be held in trust by the owner for the benefit of the vendee, until\nthe trust is terminated (i) by the owner's performance of the terms of\nthe contract of sale, or (ii) by a default of the vendee excusing the\nowner's performance of the terms of the contract of sale, or (iii) by\nrelease or discharge of the owner's liability to refund such advances to\nthe vendee.\n (d) Until the further trust is terminated as provided in this section,\nsuch advances shall not be applied by the owner for any purpose other\nthan payment of the cost of improvement and satisfaction of any\nliability of the owner to refund such advances, or any part thereof, to\nthe vendee. Upon termination of the said trust, the beneficial interest\nin such advances or any portion thereof remaining in the hands of the\nowner shall vest in the owner, provided that all trust claims applicable\nto such advances have been paid or discharged.\n (e) Any provision whereby the vendee waives the provisions of this\nsection, whether contained in the contract of sale or otherwise, shall\nbe absolutely void.\n (f) Subject to the provisions of this section, the rights and remedies\nwhich may be exercised by a holder of trust claims with respect to\nassets of a trust defined in section seventy of this chapter may be\nexercised, in the same manner and to the same extent, by the vendee with\nrespect to such advances.\n (g) The enforcement of the trust provided in this section shall not be\ndeemed to prohibit the vendee from seeking to enforce such additional or\nalternative remedies provided by law as shall afford the vendee complete\nrelief.\n 3. (a) The initial advance pursuant to a contract of sale which by its\nterms provides for or is incidental to a contract providing for the\nconstruction on the subject real property of residential condominium\nunit or any structure designed solely for residential occupancy of not\nmore than two families living separately, on property to be purchased\nshall, at the vendee's option, be deposited within five business days\nthereafter by the recipient in an interest bearing escrow account in a\nbank, trust company, savings bank, state or federal savings and loan\nassociation, located in this state. Such deposit, together with the\ninterest accumulated thereon, shall remain
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