Property Management
A New York property manager who collects rents and security deposits must:
ADeposit all funds in their personal bank account
BHold security deposits in a separate interest-bearing trust account✓ Correct
CInvest security deposits in stocks
DReturn security deposits immediately upon request
Explanation
New York law requires that security deposits be held in a separate trust account. For buildings with six or more units, the deposit must be in an interest-bearing account, with the interest (less a 1% administrative fee) remitted to the tenant.
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