Arts and Cultural Affairs - Theatrical Syndication Financing - Regulation of Theatrical Syndication Financing - Injunctions; modification or dissolution

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.
§ 23.11. Injunctions; modification or dissolution. 1. Whenever the
attorney general shall believe from evidence satisfactory to him that
any person has engaged or is about to engage in any act or practice
constituting a violation of any provision of this article or any rule or
regulation hereunder, he may in his discretion bring an action in the
supreme court of the state of New York to enjoin the acts or practices
and to enforce compliance with this article or any rule or regulation
hereunder. Upon a proper showing a permanent or temporary injunction or
restraining order shall be granted, which may include the appointment of
a temporary or permanent receiver of all of the assets and affairs of a
theatrical production, as defined herein, for the purpose of transacting
the affairs or liquidating such production, upon conditions set by the
court, whenever such relief is deemed by such court in the interest of
the investor and the public generally. Upon a showing by the attorney
general that a violation of this article or any rule or regulation
thereunder has occurred, he may include in an action under this article
an application to direct restitution of any moneys or property obtained
directly or indirectly by such violation. Whenever the court shall
determine that a violation of this article has occurred, the court may
impose a civil penalty of not more than one thousand dollars for each
such violation.

2. Any person against whom an injunction has been granted under the
provisions of this article may apply to the supreme court at any time
after five years from the date such permanent injunction became
effective, upon at least sixty days' notice to the attorney general, for
an order dissolving such injunction or modifying the same upon such
terms and conditions as the court deems necessary or desirable. Such
application for dissolution or modification of such injunction shall
contain a recitation of the facts and circumstances which caused the
granting of the injunction; the occupation and employment of the person
making the application and his financial remuneration therefrom since
the time the injunction was granted; his net worth at the time of the
application and the sources thereof, together with any other facts
bearing upon the reasonableness of the application and the character of
the applicant, as may enable the court to issue an order that will
properly dispose of such application in the interests of justice. A copy
of such application, together with copies of any other papers in support
thereof, shall be served upon the attorney general at least sixty days
prior to the return date thereof. In addition thereto the applicant
shall file with the court a good and sufficient surety bond in the sum
of one thousand dollars guaranteeing that he will pay all costs and
expenses of an investigation by the attorney general of such applicant
and the statements and claims alleged in the application together with
any further investigation which the attorney general may deem necessary
or desirable to determine whether he should consent to the application,
oppose the same or make such other recommendations to the court as in
his opinion are desirable to be included in any modification of such
injunction. Should it appear in the course of such investigation by the
attorney general that said sum is not sufficient, the attorney general
may apply to the court by usual notice of motion or order to show cause
for an increase in the amount of security or further surety bond
necessary to fully pay all of the costs of the investigation and the
court may require such further bond as the situation requires to fully
pay such costs and expenses. Upon the completion of such investigation,
the attorney general may file an answer to such application setting
forth such facts as are pertinent to the determination by the court of
the matter before it and whether said injunction should be dissolved,
modified or continued in whole or in part and what conditions, if any,
shall be attached to any dissolution or modification of said injunction.
After a hearing upon such application and after any further
investigation, proof or testimony which the court may order, it may make
a final order dissolving the permanent injunction or modifying the same
upon such terms and conditions as in its opinion are just and desirable,
or in its discretion, may deny the application. Such order shall contain
a direction that the applicant pay to the attorney general the costs and
expenses of the investigation in connection with the proceeding, and any
judgment entered thereon may be enforced directly against the surety on
the bond. The court shall grant no temporary or other relief from the
injunction in force pending a final determination of such application.
No application under this subdivision shall be entertained: (a) where
the injunction was granted as an incident to a crime of which the
applicant has been convicted, nor (b) in any case where the applicant
has been convicted of a felony or a crime that would be a felony if
committed in the state of New York since the issuance of the injunction,
nor (c) convicted at any time of any crime involving stocks, bonds,
investments, securities, or like instruments, nor (d) convicted at any
time of any crime involving theatrical syndication interests, which are
the subject matter of this article. Nor shall anything contained in
this subdivision be construed to deny to or interfere with the power of
the attorney general to bring any other action or proceeding, civil or
criminal, against the applicant at any time.