DEPOSIT OR INVESTMENT OF SECURITY DEPOSIT
a) Landlords receiving security deposits for 10 or more rental units shall invest or deposit
security deposits in an insured money market fund established by an investment company based
in New Jersey, or in an account that bears a variable rate of interest, at a State of federally
chartered bank, savings bank or savings and loan association insured by the federal government
and located in New Jersey. All deposits and investments shall be made in accordance with the
Security Deposit Law. The security deposit shall be used in accordance with the contract, lease
or agreement and shall not be mingled with the personal property or become an asset of the
landlord.
b) Landlords subject to this law, receiving security deposits for less than 10 rental units shall
deposit money in a State or federally chartered banking institution, in this State insured by the
federal government in an account that bears interest on time or savings deposits. The
Commissioner of Banking and Insurance, by rule or regulation, may require some or all persons
receiving money for less than 10 rental units to follow the investment and deposit requirements
that apply to landlords with more than 10 rental units.