§ 7-107. Liability of a grantee or assignee for deposits made by
tenants upon conveyance of rent stabilized dwelling units. 1. This
section shall apply only to dwelling units subject to the New York city
rent stabilization law of nineteen hundred sixty-nine or the emergency
tenant protection act of nineteen seventy-four.

2. (a) Any grantee or assignee of any dwelling unit referred to in
subdivision one of this section shall be liable to a tenant for any sum
of money or any other thing of value deposited as security for the full
performance by such tenant of the terms of his lease, plus any accrued
interest, if his or its predecessor in interest was liable for such
funds. Such liability shall attach whether or not the successor in
interest has, upon the conveyance of such dwelling unit, received the
sum as deposited.

(b) The liability of a receiver for payment of any security deposit
plus accrued interest pursuant to this subdivision shall be limited to
the amount of such deposit actually turned over to him or it pursuant to
subdivision one of section 7-105 of this chapter and to the operating
income in excess of expenses generated during his or its period of
receivership.

3. Any agreement by a lessee or tenant of a dwelling unit waiving or
modifying his rights as set forth in this section shall be void.