46:8-19. Security deposits; investment, deposit, disposition
Whenever money or other form of security shall be deposited or advanced on a contract, lease
or license agreement for the use or rental of real property as security for performance of the
contract, lease or agreement or to be applied to payments upon such contract, lease or agreement
when due, such money or other form of security, until repaid or so applied including the tenant's
portion of the interest or earnings accumulated thereon as hereinafter provided, shall continue to
be the property 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 for the use in accordance with the
terms of the contract, lease or agreement and shall not be mingled with the personal property or
become an asset of the person receiving the same.
The person receiving money so deposited or advanced shall:
a. (1) Invest that money in shares of an insured money market fund established by an
investment company based in this State and registered under the "Investment Company Act of
1940," 54 Stat. 789 (15 U.S.C. § 80a-1 et seq.) whose shares are registered under the "Securities
Act of 1933," 48 Stat. 74 (15 U.S.C. § 77a. et seq.) and the only investments of which fund are
instruments maturing in one year or less, or (2) deposit that money in a State or federally
chartered bank, savings bank or savings and loan association in this State insured by an agency
of the federal government in an account bearing a variable rate of interest, which shall be
established at least quarterly, which is similar to the average rate of interest on active interest-
bearing money market transaction accounts paid by the bank or association, or equal to similar
accounts of an