New York General Business Law Section 781 - Security to be furnished by vendor.

781. Security to be furnished by vendor. When a vendor undertakes to build or construct a home for a vendee, and such vendee is required to pay a deposit to such vendor, the vendor shall post with the chief fiscal officer of the municipality wherein such home is to be erected or constructed, a bond in the amount of such deposit or deposits. Such bond shall be posted within five business days after receipt of said deposit or deposits, by the vendor, and shall secure the payment of said deposit to the vendee upon the vendor's default. Such bond shall be in such form as required by the superintendent of financial services.


Last modified: February 3, 2019