Bill Text: NY S02374 | 2017-2018 | General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO JUDICIARY [S02374 Detail]

Download: New_York-2017-S02374-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          2374
                               2017-2018 Regular Sessions
                    IN SENATE
                                    January 13, 2017
                                       ___________
        Introduced by Sen. ALCANTARA -- 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 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.
                                                                   LBD07007-01-7