(c) The court in which the dispute is being
heard shall accept and hold in trust any rent deposited under this section and
shall make payments out of money collected as provided in this section. The
court shall order payment of the money collected or portion thereof to the
landlord if the court finds that the rent is due and has not been paid to the
landlord and that the tenant did not have any basis to withhold, deduct, or
otherwise set off the rent not paid. The court shall order payment of the money
collected or portion thereof to the tenant if the court finds that the rent is
not due or has been paid, or that the tenant had a basis to withhold, deduct,
or otherwise set off the rent not paid.
(d) The court, upon finding that either the
landlord or the tenant raised the issue of payment or nonpayment of rent in bad
faith, shall order that person to pay the other party reasonable interest on
the rent deposited into the trust. [L 1984, c 211, §1; am L 1989, c 211, §10;
am L 1990, c 281, §11; am L 2012, c 142, §11; am L 2013, c 116, §§19, 25(18);
am L 2015, c 101, §4; am L 2021, c 41, §19; am L 2022, c 278, §17]
Note
The repeal and reenactment note at subsection (b) in the main
volume took effect on June 30, 2020, pursuant to L 2015, c 101, §4.
Case Notes
Assuming that possession of leased premises and rent to be
paid into the trust fund are property interests protected under the due process
clause, this section does not offend due process as tenants are afforded an
opportunity to challenge summary possession and motions for the establishment
of a rent trust fund. 107 H. 73, 110 P.3d 397 (2005).