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

                                          272

                              2011-2012 Regular Sessions

                                   I N  S E N A T E

                                      (PREFILED)

                                    January 5, 2011
                                      ___________

       Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
         printed to be committed to the Committee on Judiciary

       AN ACT to amend general obligations law, in relation to money  deposited
         or advanced for use or rental of real property

         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  shall  be entitled to receive, as administration
   14  expenses, a sum equivalent to one per cent per annum upon  the  security
   15  money  so  deposited, which shall be in lieu of all other administrative
   16  and custodial expenses. The balance of] the interest paid by the banking
   17  organization shall be the money of the  person  making  the  deposit  or
   18  advance  and  shall either be held in trust by the person with whom such
   19  deposit or advance shall be made, until repaid or applied for the use or
   20  rental of the leased premises, or annually paid to the person making the
   21  deposit of security money.
   22    S 2. This act shall take effect on the first of January next  succeed-
   23  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.
                                                                  LBD01602-01-1