N.Y. General Obligations Law § 7-105: Landlord failing to turn over deposits made by tenants or licensees and to notify tenants or licensees thereof in certain cases

§ 7-105. Landlord failing to turn over deposits made by tenants or

licensees and to notify tenants or licensees thereof in certain cases.

1. Any person, firm or corporation and the employers, officers or agents

thereof, whether the owner or lessee of the property leased, who or

which has or hereafter shall have received from a tenant or licensee a

sum of money or any other thing of value as a deposit or advance of

rental as security for the full performance by such tenant or licensee

of the terms of his lease or license agreement, or who or which has or

shall have received the same from a former owner or lessee, shall, upon

conveying such property or assigning his or its lease to another, or

upon the judicial appointment and qualifying of a receiver in an action

to foreclose a mortgage or other lien of record affecting the property

leased, or upon the conveyance of such property to another person, firm

or corporation by a referee in an action to foreclose a mortgage or

other lien of record affecting the property leased if a receiver shall

not have been appointed and qualified in such action, at the time of the

delivery of the deed or instrument or assignment or within five days

thereafter, or within five days after the receiver shall have qualified,

deal with the security deposit as follows:

Turn over to his or its grantee or assignee, or to the receiver in the

foreclosure action, or to the purchaser at the foreclosure sale if a

receiver shall not have been appointed and qualified the sum so

deposited, and notify the tenant or licensee by registered or certified

mail of such turning over and the name and address of such grantee,

assignee, purchaser or receiver.

2. Any owner or lessee turning over to his or its grantee, assignee,

to a purchaser of the leased premises at a foreclosure sale, or to the

receiver in the foreclosure action the amount of such security deposit

is hereby relieved of and from liability to the tenant or licensee for

the repayment thereof; and the transferee of such security deposit is

hereby made responsible for the return thereof to the tenant or

licensee, unless he or it shall thereafter and before the expiration of

the term of the tenant's lease or licensee's agreement, transfer such

security deposit to another, pursuant to subdivision one hereof and give

the requisite notice in connection therewith as provided thereby. A

receiver shall hold the security subject to such disposition thereof as

shall be provided in an order of the court to be made and entered in the

foreclosure action. The provisions of this section shall not apply if

the agreement between the landlord and tenant or licensee is

inconsistent herewith.

3. Any failure to comply with this section is a misdemeanor.