"A security deposit" 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. The rule against commingling of a security deposit with a landlord's own funds was reaffirmed by this court in Levy v. Taninbaum (NYLJ, Dec. 24, 1997, at 23, col 6 [App Term, 9th & 10th Jud. Dists.), wherein it was stated: " A landlord holding a security deposit under a lease covering the rental of real property does so in the capacity of a trustee (Glass v. Janbach Properties, Inc. 73 AD2d 106,108 [1980]), The landlord owes a duty not to commingle the deposit with his own funds, and upon breach of that duty, he forfeits his right to avail himself of the deposit for any purpose (Matter of Perfection Technical Services Press, 22 AD2d 352, 356, aff'd 18 NY2d 644 [1965]). Commingling of security deposit funds with a landlord's personal funds is a conversion and the tenant has an immediate right to recover the funds (LeRoy v. Sayers, 217 AD2d 63, 68, citing Sommers v. Timely Toys, 209 F2d 342 [2nd Cir 1954]; 74 NY Jur 2d Landlord and Tenant, Sec, 604)." Finnerty, etal v. Freeman, 176 Misc 2d 220, 221 [1998].
ANALYSIS