§ 7-103. Money deposited or advanced for use or rental of real
property; waiver void; administration expenses. 1. Whenever money shall
be deposited or advanced on a contract or license agreement for the use
or rental of real property as security for performance of the contract
or agreement or to be applied to payments upon such contract or
agreement when due, such money, with interest accruing thereon, if any,
until repaid or so applied, 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, but may be disposed of as provided in section 7-105 of this
chapter.

2. Whenever the person receiving money so deposited or advanced shall
deposit such money in a banking organization, such person shall
thereupon notify in writing each of the persons making such security
deposit or advance, giving the name and address of the banking
organization in which the deposit of security money is made, and the
amount of such deposit. Deposits in a banking organization pursuant to
the provisions of this subdivision shall be made in a banking
organization having a place of business within the state. If the person
depositing such security money in a banking organization shall deposit
same in an interest bearing account, he shall be entitled to receive, as
administration expenses, a sum equivalent to one per cent per annum upon
the security money so deposited, which shall be in lieu of all other
administrative and custodial expenses. The balance of the interest paid
by the banking organization shall be the money of the person making the
deposit or advance and shall either be held in trust by the person with
whom such deposit or advance shall be made, until repaid or applied for
the use or rental of the leased premises, or annually paid to the person
making the deposit of security money.

2-a. Whenever the money so deposited or advanced is for the rental of
property containing six or more family dwelling units, the person
receiving such money shall, subject to the provisions of this section,
deposit it in an interest bearing account in a banking organization
within the state which account shall earn interest at a rate which shall
be the prevailing rate earned by other such deposits made with banking
organizations in such area.

2-b. In the event that a lease terminates other than at the time that
a banking organization in such area regularly pays interest, the person
depositing such security money shall pay over to his tenant such
interest as he is able to collect at the date of such lease termination.

3. Any provision of such a contract or agreement whereby a person who
so deposits or advances money waives any provision of this section is
absolutely void.

4. The term "real property" as used in this section is co-extensive in
meaning with lands, tenements and hereditaments.