NY Gen Oblig L § 7-103 (2021)
2021 New York Laws GOB - General Obligations Article 7 - Obligations Relating to Property Received as Security Title 1 - Money Deposited as Security to Be Held in Trust in Certain Cases 7-103 - Money Deposited or Advanced for Use or Rental of Real Property; Waiver Void; Administration Expenses.

§ 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.