NY Lien Law Art. 3 A creates owner and contractor trusts to ensure payment to project participants; trust assets must be used for costs of improvement, and diversions carry civil/criminal penalties. Trustees may commingle but must keep detailed §75 records.

Article 3-A of New York’s Lien Law establishes a system of trusts to ensure that certain individuals or entities that contributed services, labor and/or materials to a construction project for the improvement of real property are paid for their efforts.