Bill Text: NY S02371 | 2009-2010 | General Assembly | Introduced

New York Senate Bill 2371 (Prior Session Legislation)

Introduced

Bill Title: 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.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-01-06 - REFERRED TO JUDICIARY [S02371 Detail]

Download: New_York-2009-S02371-Introduced.html

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2371
                              2009-2010 Regular Sessions
                                   I N  S E N A T E
                                   February 19, 2009
                                      ___________
       Introduced  by  Sen. PADAVAN -- 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:
    1    Section  1.  Subdivision 2 of section 7-103 of the general obligations
    2  law, as amended by chapter 402 of the laws of 1979, is amended  to  read
    3  as follows:
    4    2.  Whenever the person receiving money so deposited or advanced shall
    5  deposit such money in a banking organization, such person shall thereup-
    6  on notify in writing each of the persons making such security deposit or
    7  advance, giving the name and address  of  the  banking  organization  in
    8  which  the  deposit  of  security  money is made, and the amount of such
    9  deposit. Deposits in a banking organization pursuant to  the  provisions
   10  of  this  subdivision  shall  be made in a banking organization having a
   11  place of business within the state. If the person depositing such  secu-
   12  rity  money  in a banking organization shall deposit same in an interest
   13  bearing account, he OR SHE shall be entitled  to  receive,  as  adminis-
   14  tration  expenses,  a  sum  equivalent to TWENTY PERCENT OF THE INTEREST
   15  EARNED BY SUCH SECURITY MONEY PER ANNUM, BUT NO MORE THAN one [per cent]
   16  PERCENT per annum [upon] OF the security money so deposited, which shall
   17  be in lieu of all  other  administrative  and  custodial  expenses.  The
   18  balance  of  the  interest paid by the banking organization shall be the
   19  money of the person making the deposit or advance and  shall  either  be
   20  held  in  trust by the person with whom such deposit or advance shall be
   21  made, until repaid or applied for the use or rental of the leased  prem-
   22  ises,  or  annually  paid  to  the person making the deposit of security
   23  money.
   24    S 2. This act shall take effect on the first of January next  succeed-
   25  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.
                                                                  LBD09506-01-9