N.Y. Comp. Codes R. & Regs. Tit. 9 § 2105.5 - Security deposits
L. 1964, ch. 244
Regardless of any contract, agreement, lease or other
obligation heretofore or hereafter entered into, no person shall demand,
receive or retain a security deposit for or in connection with the use and
occupancy of housing accommodations, except (a) if the demand, collection, or
retention of such security deposit was permitted under the rent regulations
promulgated pursuant to the federal Act, and said security deposit does not
exceed the rent for one month in addition to the authorized collection of rent;
or (b) if the demand, collection, or retention of such security deposit was
pursuant to a rental agreement with the tenant and said security deposit does
not exceed the rent for one month (or for one week where the rental payment
period is for a term of less than one month) in addition to the authorized
collection of rent and provided (1) that said security deposit shall be
deposited in an interest-bearing account in a banking organization on and after
September 1, 1970; (2) the person depositing such security money shall be
entitled to receive, as administration expenses, a sum equivalent to one
percent per annum upon the security money so deposited; (3) the balance of the
interest paid by the banking organization shall be held in trust until repaid
or applied for the rental of the housing accommodations, or annually paid to
the tenant; and (4) so long as the landlord complies with the provisions of
section
of the General Obligations Law.7-103