Respondents argue that the amendment does not apply to security deposits received prior to the effective date thereof; that the retrospective application of such amendment would represent an unconstitutional impairment of respondents’ contractual rights; and that the Attorney-General has no standing to bring this proceeding under subdivision 12 of section 63 of the Executive Law.
Respondents, on September 1, 1970, had about $919,000 security deposits in noninterest-bearing accounts, which they refused to transfer to interest-bearing accounts after said date. Respondents make no issue that they are required to deposit security moneys received after September 1, 1970 in an interest-bearing account. Section 7-103 as amended reads (underlining supplied):
‘ ‘ Money deposited or advanced for use or rental of real property; waiver void; administration expenses
“1. Whenever money shall be deposited or advanced on a contract or license agreement for the use or rental of real property as security for performance of the contract or agreement or to be applied to payments upon such contract or agreement, when due, such money, with interest accruing thereon, if any, until repaid or so applied, shall continue to be the money of the person making such deposit or advance and shall be held in trust by the person with whom such deposit or advance shall be made and shall not be mingled with the personal moneys or become an asset of the person receiving the same, bnt may be disposed of as provided in section 7-105 of this chapter.