senate Bill S514

2013-2014 Legislative Session

Prohibits the collection of administration expenses by a landlord and provides for the tenant to collect all interest paid on a security deposit or advance

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Archive: Last Bill Status -

  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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view actions (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to judiciary
Jan 09, 2013 referred to judiciary


S514 - Details

See Assembly Version of this Bill:
Law Section:
General Obligations Law
Laws Affected:
Amd ยง7-103, Gen Ob L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S1281
2009-2010: S3338

S514 - Summary

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.

S514 - Sponsor Memo

S514 - Bill Text download pdf

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


                       2013-2014 Regular Sessions

                            I N  S E N A T E


                             January 9, 2013

Introduced by Sen. ESPAILLAT -- 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


  Section 1. The section heading and subdivision 2 of section  7-103  of
the  general  obligations law, the section heading as amended by chapter
1009 of the laws of 1970 and subdivision 2 as amended by chapter 402  of
the laws of 1979, are amended to read as follows:
  Money deposited or advanced for use or rental of real property; waiver
void[; administration expenses].
  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 shall be entitled  to  receive,  as  administration
expenses,  a  sum equivalent to one per cent per annum upon 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.


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