Urbana — Ch. 12.5 Landlord-Tenant Relationships § 12.5-19
Same—Security deposit interest
Operative Text
(a) A landlord who receives a security deposit of one hundred dollars ($100.00) or more from a tenant to secure the payment of rent or to compensate for damage to property shall pay interest to the tenant, computed from the date the deposit is paid, at a rate equal to the interest paid by the largest commercial bank, as measured by total assets, having its main banking premises in Champaign County, Illinois, on minimum deposit passbook savings accounts as of the thirtieth of June immediately preceding the inception of the rental agreement on any such deposit held by the landlord for more than six (6) months. (b) The landlord shall, within thirty (30) days after the end of each twelve-month rental period, pay to the tenant any interest, by cash or credit to be applied to rent due, except when the tenant is in default under the terms of the lease. For the purposes of this provision, default shall mean nonpayment of rent or a successful claim by the landlord for possession of the premises for good cause other than nonpayment of rent. A landlord who willfully fails or refuses to pay the interest required by this article shall, upon a finding by a circuit court that he/she has willfully failed or refused to pay, be liable for an amount equal to the amount of the security deposit, together with court costs and reasonable attorney's fees.
Under Urbana Ch. 12.5 § 12.5-19, when a landlord holds a security deposit of $100 or more for longer than six months, the landlord must pay interest on that deposit. The interest rate is tied to the rate offered by the largest commercial bank (by total assets) with its main premises in Champaign County on passbook savings accounts, as of June 30th before the rental agreement began. Interest must be paid within 30 days after each 12-month rental period ends, either as cash or as a rent credit, unless the tenant is in default for nonpayment or a court-ordered possession.
Plain English — not legal advice.
Operators subject to Urbana Ch. 12.5 § 12.5-19 generally track the applicable interest rate each year by checking the passbook savings rate at the largest Champaign County commercial bank as of June 30th before the lease term begins. Compliant landlords pay accrued interest within 30 days after each 12-month period, either by direct payment or by applying it as a rent credit, and maintain records documenting both the rate used and the payment made. A willful failure to pay the required interest can result in a court finding the landlord liable for the full amount of the security deposit plus court costs and reasonable attorney's fees.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under Urbana Ch. 12.5 § 12.5-19, tenants who have paid a security deposit of $100 or more are entitled to receive interest on that deposit after it has been held for more than six months, paid out within 30 days after each 12-month rental period. If a landlord willfully refuses to pay the required interest, a circuit court may hold the landlord liable for the entire security deposit amount, along with court costs and reasonable attorney's fees. Tenants who believe this provision has been violated may consider consulting a tenant-rights organization or reviewing options through the local court system to understand available remedies.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated November 6, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
Rules and statutes that cite this regulation