Bill Text: NY A05594 | 2015-2016 | General Assembly | Introduced

New York Assembly Bill 5594 (Prior Session Legislation)

Introduced

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 10-0)

Status: (Introduced - Dead) 2016-01-06 - referred to judiciary [A05594 Detail]

Download: New_York-2015-A05594-Introduced.html

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5594
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 27, 2015
                                      ___________
       Introduced  by  M.  of  A.  SEPULVEDA, GLICK, HOOPER, ROBINSON, STECK --
         Multi-Sponsored by -- M.  of A. FAHY, GOTTFRIED, MOSLEY, PERRY, RIVERA
         -- read once and referred 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    S 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.
                                                                  LBD06413-01-5