S T A T E   O F   N E W   Y O R K
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                                 1441--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 2, 2009
                               ___________

Introduced  by  Sen.  DUANE  -- read twice and ordered printed, and when
  printed to be committed to the  Committee  on  Judiciary  --  reported
  favorably  from said committee and committed to the Committee on Codes
  -- committee discharged, bill amended, ordered  reprinted  as  amended
  and recommitted to said committee

AN  ACT  to amend the general obligations law, in relation to the return
  of a security deposit by a landlord

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.    The  general obligations law is amended by adding a new
section 7-104 to read as follows:
  S 7-104.  MONEY DEPOSITED OR ADVANCED FOR USE OR RENTAL OF ANY  DWELL-
ING; RETENTION.  1.  DEFINITIONS. FOR THE PURPOSE OF THIS SECTION:
  (A)   THE TERM "SECURITY DEPOSIT" SHALL MEAN ANY ADVANCE OR DEPOSIT OF
MONEY THAT IS SUBJECT TO THE PROVISIONS OF SECTION 7-103 OF THIS  TITLE,
AND  THE  PRIMARY  FUNCTION  OF  WHICH IS TO SECURE THE PERFORMANCE OF A
RENTAL AGREEMENT FOR THE USE OR RENTAL OF ANY DWELLING OR ANY PART THER-
EOF.
  (B)  THE TERM "LANDLORD" SHALL MEAN ANY PERSON  WHO  RECEIVES  PAYMENT
FROM A TENANT FOR THE RENTAL OR USE OF ANY DWELLING OR ANY PORTION THER-
EOF AND HAS RECEIVED A SECURITY DEPOSIT IN CONNECTION WITH SUCH RENTAL.
  (C)  THE TERM "TENANT" SHALL MEAN ANY PERSON WHO OCCUPIES ANY DWELLING
OR  ANY  PORTION  THEREOF  FOR  WHICH  HE  OR  SHE PAYS RENT AND WHO, IN
CONNECTION WITH SUCH RENTAL, HAS FURNISHED A SECURITY DEPOSIT.
  2.  A LANDLORD SHALL, WITHIN THIRTY DAYS AFTER THE TENANT VACATES  THE
DWELLING  RETURN TO THE TENANT THE FULL SECURITY DEPOSIT AND ANY ACCRUED
INTEREST TO WHICH THE TENANT IS ENTITLED.
  3. A LANDLORD MAY RETAIN ALL OR A  PART  OF  A  SECURITY  DEPOSIT  FOR
NONPAYMENT  OF RENT, USE AND OCCUPANCY, UNJUSTIFIABLE ABANDONMENT OF THE
PREMISES PRIOR TO THE EXPIRATION OF THE LEASE TERM, NONPAYMENT OF UTILI-
TY CHARGES, REPAIR WORK OR CLEANING CONTRACTED BY THE TENANT OR  DAMAGES

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00196-04-9
              

S. 1441--A                          2

CAUSED  BY  THE  TENANT  TO THE PREMISES. IN THE EVENT THAT THE LANDLORD
RETAINS ANY PORTION OF THE SECURITY DEPOSIT, HE OR SHE SHALL PROVIDE THE
TENANT WITH A WRITTEN STATEMENT LISTING THE REASONS FOR THE RETENTION OF
SUCH PORTION OF THE SECURITY DEPOSIT. WHEN THE STATEMENT IS DELIVERED IT
SHALL BE ACCOMPANIED BY PAYMENT OF THE DIFFERENCE BETWEEN ANY SUM DEPOS-
ITED  AND  THE  AMOUNT  RETAINED.  THE  LANDLORD SHALL BE DEEMED TO HAVE
COMPLIED WITH THIS SECTION BY MAILING  THE  STATEMENT  AND  ANY  PAYMENT
REQUIRED  TO  THE  TENANT'S NEW ADDRESS, IF KNOWN BY THE LANDLORD, OR TO
THE LAST KNOWN ADDRESS OF THE TENANT.
  4. THE WILLFUL RETENTION OF A SECURITY DEPOSIT IN  VIOLATION  OF  THIS
SECTION  SHALL  RENDER  A  LANDLORD LIABLE FOR TREBLE THE AMOUNT OF THAT
PORTION OF THE SECURITY DEPOSIT WRONGFULLY  WITHHELD  FROM  THE  TENANT,
TOGETHER  WITH REASONABLE ATTORNEY'S FEES AND COURT COSTS. IN ANY ACTION
BROUGHT BY A TENANT UNDER THIS SECTION,  THE  LANDLORD  SHALL  BEAR  THE
BURDEN OF PROVING THAT HIS OR HER WITHHOLDING OF THE SECURITY DEPOSIT OR
ANY PORTION THEREOF WAS NOT WILLFUL.
  5.    ANY PROVISION OF A CONTRACT OR AGREEMENT WHEREBY A PERSON WHO SO
DEPOSITS OR ADVANCES MONEY WAIVES ANY PROVISION OF THIS SECTION IS ABSO-
LUTELY VOID.
  S 2. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.