(a) As a condition of receiving the commissioner's authorization pursuant to section 903.4 of this Part, the prospective applicant or applicant or in the case of an existing community, the operator shall:

1. (1) establish a government insured interest-bearing account or accounts which earn interest at a rate consistent with prevailing rates; and

2. (2) enter into an escrow agreement with a New York bank, New York savings and loan association or a New York trust company for the direct deposit of all priority reservation fees collected pursuant to this Part. Such agreement shall state that:

   1. (i) in the case of a prospective applicant or an applicant which has not yet been issued a certificate of authority, the purpose of the agreement is to protect prospective residents who have paid priority reservation fees for the purpose of allowing the applicant or prospective applicant to test the market demand for the proposed community and/or to allow the prospective residents to place their names on a priority waiting list for the proposed community; or
   2. (ii) in the case of an existing community operating under a certificate of authority, the purpose of the agreement is to protect prospective residents who have paid priority reservation fees to the operator in order to place their names on a priority waiting list for admission to the community; and
   3. (iii) the escrow agent shall release all or a portion of the reservation fees on deposit, including interest earned from the investment of the funds at the prevailing rates, to the operator, prospective residents or the prospective residents' legal representatives upon presentation of evidence of compliance with subdivision (e), (f), (g) or (h) of this section within 15 business days of receipt by the escrow agent of such written notice or upon order of a court of competent jurisdiction.