SB 426 Requires certain landlords to hold security deposits in federally insured accounts, separate from the landlord's own funds
Sponsor: Lamping
LR Number: 1783S.02I Fiscal Note: 1783-02N.ORG
Committee: General Laws
Last Action: 3/10/2011 - Second Read and Referred S General Laws Committee Journal Page: S437
Title: Calendar Position:
Effective Date: August 28, 2011

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Current Bill Summary


SB 426 - Under the terms of this act, a landlord of 20 or more dwelling units is required to hold all security deposits in a federally insured account, separate from his or her own funds. The security deposit account shall not be subject to the claims of any creditor of the landlord. At the time of receiving a security deposit, a landlord must provide the tenant or renter with a signed receipt indicating the date, the amount of the deposit, the name of the person receiving the deposit or, in the case of an agent, the name of the landlord for whom the security deposit is received, a description of the leased dwelling unit, and the name and address of the financial institution that will hold the deposit.

The provision contained in this act is substantially similar to one contained in HB 404 (2011).

STEPHEN WITTE