The New York State Senate

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   635

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by M. of A. WEINSTEIN, REILLY, GOTTFRIED, DINOWITZ -- Multi-
  Sponsored by  --  M.  of  A.  BOYLAND,  COOK,  GALEF,  GLICK,  JAFFEE,
  V. LOPEZ, MILLMAN, ORTIZ, PHEFFER, WRIGHT -- read once and referred to
  the Committee on Judiciary

AN ACT to amend the general obligations law, in relation to tenant secu-
  rity deposit accounts

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

  Section 1. Subdivision 2 of section 7-103 of the  general  obligations
law,  as  amended by chapter 402 of the laws of 1979, is amended to read
as follows:
  2. Whenever the person receiving money so deposited or advanced  shall
deposit such money in a banking organization, such person shall thereup-
on notify in writing each of the persons making such security deposit or
advance,  giving  the  name  and  address of the banking organization in
which the deposit of security money is made,  and  the  amount  of  such
deposit.  Deposits  in a banking organization pursuant to the provisions
of this subdivision shall be made in a  banking  organization  having  a
place  of business within the state. If the person depositing such secu-
rity money in a banking organization shall deposit same in  an  interest
bearing  account,  [he]  SUCH  PERSON  shall  be entitled to receive, as
administration expenses, a sum  equivalent  to  TWENTY  PERCENT  OF  THE
INTEREST  EARNED  BY SUCH SECURITY MONEY PER ANNUM, BUT NO MORE THAN one
[per cent] PERCENT per annum [upon] OF the security money so  deposited,
which  shall  be  in  lieu  of  all  other  administrative and custodial
expenses. The balance of the interest paid by the  banking  organization
shall be the money of the person making the deposit or advance and shall
either  be held in trust by the person with whom such deposit or advance
shall be made, until repaid or applied for the  use  or  rental  of  the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03126-01-1

A. 635                              2

leased  premises,  or  annually paid to the person making the deposit of
security money.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.