Property Management
In Colorado, a property manager who collects security deposits must hold them in:
ATheir personal bank account for convenience
BA separate trust account distinct from operating funds✓ Correct
CThe property owner's personal account
DA savings account earning the highest interest for the manager
Explanation
Security deposits in Colorado must be held in a separate trust account. Commingling security deposits with operating funds is prohibited and constitutes a violation of Colorado law.
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