Bill Text: NY S01773 | 2023-2024 | General Assembly | Introduced

---

Bill Title: Relates to permitting lessees the option to pay security deposits in six or fewer equal installments.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - REFERRED TO JUDICIARY [S01773 Detail]

Download: New_York-2023-S01773-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          1773

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 13, 2023
                                       ___________

        Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Judiciary

        AN ACT to amend the general obligations law, in relation  to  permitting
          lessees the option to pay security deposits in installments

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 7-103 of the general obligations law is amended  by
     2  adding a new subdivision 2-c to read as follows:
     3    2-c.  For any deposit or advance under this section, the person making
     4  such deposit or advance shall have the option to  pay  such  deposit  or
     5  advance in installments.
     6    (a)  Such  installments  shall  be due on the first of each subsequent
     7  month until the deposit or advance is paid in full.
     8    (b) For leases under this section of a term of  one  year  or  longer,
     9  tenants  shall be allowed to pay not more than six consecutive and equal
    10  installments.
    11    (c) Landlords shall not impose any additional fees or  interest  on  a
    12  tenant  that  pays  his  or  her  security deposit or advance under this
    13  subdivision.
    14    (d) Any agreement to pay a security deposit in installments  shall  be
    15  included  within  such contract or agreement and shall specify the total
    16  deposit amount due and the amount due for each installment.
    17    (e) This subdivision shall apply to any deposit,  advance  or  non-re-
    18  fundable fee used as a down payment for use of rental property.
    19    (f)  Any  person who violates the provisions of this subdivision shall
    20  be punished by a civil fine of up to fifteen percent of the annual  rent
    21  under such contract or agreement.
    22    §  2.  This  act  shall take effect on the sixtieth day after it shall
    23  have become a law.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00699-01-3