Prohibits the collection of administration expenses by a landlord and provides for the tenant to collect all interest paid by the banking organization on a security deposit or advance when such is deposited into an interest bearing account.
STATE OF NEW YORK
________________________________________________________________________
5594
2015-2016 Regular Sessions
IN ASSEMBLY
February 27, 2015
___________
Introduced by M. of A. SEPULVEDA, GLICK, HOOPER, ROBINSON, STECK --
Multi-Sponsored by -- M. of A. FAHY, GOTTFRIED, MOSLEY, PERRY, RIVERA
-- read once and referred to the Committee on Judiciary
AN ACT to amend the general obligations law, in relation to tenant secu-
rity deposits
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The section heading and subdivision 2 of section 7-103 of
2 the general obligations law, the section heading as amended by chapter
3 1009 of the laws of 1970 and subdivision 2 as amended by chapter 402 of
4 the laws of 1979, are amended to read as follows:
5 Money deposited or advanced for use or rental of real property; waiver
6 void[; administration expenses].
7 2. Whenever the person receiving money so deposited or advanced shall
8 deposit such money in a banking organization, such person shall thereup-
9 on notify in writing each of the persons making such security deposit or
10 advance, giving the name and address of the banking organization in
11 which the deposit of security money is made, and the amount of such
12 deposit. Deposits in a banking organization pursuant to the provisions
13 of this subdivision shall be made in a banking organization having a
14 place of business within the state. If the person depositing such secu-
15 rity money in a banking organization shall deposit same in an interest
16 bearing account,[ he shall be entitled to receive, as administration
17 expenses, a sum equivalent to one per cent per annum upon the security
18 money so deposited, which shall be in lieu of all other administrative
19 and custodial expenses. The balance of] the interest paid by the banking
20 organization shall be the money of the person making the deposit or
21 advance and shall either be held in trust by the person with whom such
22 deposit or advance shall be made, until repaid or applied for the use or
23 rental of the leased premises, or annually paid to the person making the
24 deposit of security money.
25 § 2. This act shall take effect on the first of January next succeed-
26 ing the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06413-01-5
