Index
New York General Obligations Law Section 7-103
Summary
Requires landlords who own buildings with six or more units to place security deposits in interest-bearing bank accounts for the benefit of the tenant.
Rights & Rules
- 01.Tenants are entitled to the interest earned on their security deposit minus a 1% administrative fee for the landlord.
- 02.Tenants must be notified in writing of the bank's name and address where the deposit is held.
- 03.The deposit remains the property of the tenant and cannot be mixed with the landlord's personal funds.
Penalties
- 01.Landlord may be forced to return the full security deposit immediately regardless of damages if funds were commingled.
- 02.Potential for punitive damages in small claims court.
Verified Citations
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