A 6696: 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.

  
  STATE OF NEW YORK ________________________________________________________________________ 6696 2025-2026 Regular Sessions  IN ASSEMBLY March 7, 2025 ___________ Introduced by M. of A. WALKER, EPSTEIN, MAMDANI -- 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: 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] such person shall be entitled to receive, as 14 administration expenses, a sum equivalent to twenty percent of the 15 interest earned by such security money per annum, but no more than one 16 [per cent] percent per annum [upon] of the security money so deposited, 17 which shall be in lieu of all other administrative and custodial 18 expenses. The balance of the interest paid by the banking organization 19 shall be the money of the person making the deposit or advance and shall 20 either be held in trust by the person with whom such deposit or advance 21 shall be made, until repaid or applied for the use or rental of the 22 leased premises, or annually paid to the person making the deposit of 23 security money. 24 § 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. LBD06812-01-5