|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Jan 08, 2014||referred to judiciary|
|Jan 31, 2013||referred to judiciary|
senate Bill S3183
Archive: Last Bill Status - In Senate Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S3183 - Details
S3183 - Summary
Provides that a landlord depositing security deposits in an interest bearing account shall be entitled to receive as administration expenses a sum equivalent to 20 percent of the interest earned by such security money per annum, but not to exceed one percent per annum of the money so deposited.
S3183 - Sponsor Memo
BILL NUMBER:S3183 TITLE OF BILL: An act to amend the general obligations law, in relation to tenant security deposit accounts PURPOSE OF BILL: This bill ensures that tenants receive a fair share of the interest earned by their security deposits. SUMMARY OF PROVISIONS: This bill amends General Obligations Law 7-103(2) to provide that the fee retained by landlords for their expenses in administering tenant security deposit accounts shall be twenty percent of the interest earned on such accounts, up to a maximum of one percent of the amount on deposit. EXISTING LAW: General Obligations Law § 7-103 currently authorizes landlords to retain the first 1% of any interest earned on a tenant's security deposit. JUSTIFICATION: Prior to 1970, there was no requirement that tenants be paid interest on the money held by landlords as security deposits for their apartments. Instead, landlords were free to place those funds in non-interest bearing accounts, and to simply return the security deposit to the tenant at the end of the term of the lease. The Legislature sought to cure this inequity through the passage of Chapter 1009 of the Laws of 1970, which amended General Obligations Law
S3183 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 3183 2013-2014 Regular Sessions I N S E N A T E January 31, 2013 ___________ Introduced by Sen. KRUEGER -- 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 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 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. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01002-01-3
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