New Paltz Town, N.Y., Code of Ordinances ch. 94 (eCode360 ed. 2026) § 94-2
Ownership of security deposit; trust provisions
Operative Text
Whenever a tenant shall deposit with the landlord a security deposit, such deposit, or any portion thereof, until returned to the tenant or lawfully applied for obligations of the tenant to the landlord, shall continue to be the money of the tenant and shall be held in trust by the landlord with whom such deposit shall be made and shall not be mingled with the personal moneys or become an asset of the landlord.
Under New Paltz Town, N.Y., Code of Ordinances ch. 94 § 94-2, a security deposit never legally becomes the landlord's own money. From the moment it is paid until it is either returned to the tenant or properly applied to a legitimate obligation, the deposit remains the tenant's property and must be held separately in trust. The landlord is prohibited from mixing those funds with personal or business accounts.
Plain English — not legal advice.
Compliance with ch. 94 § 94-2 generally means maintaining any security deposit in a dedicated, segregated account that is kept entirely apart from operating funds or personal finances. Compliant operators treat the deposit as trust money at all times, documenting its receipt and any lawful deductions clearly. Commingling security deposit funds with other accounts is a direct violation of this provision.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 94-2 of New Paltz Town Code ch. 94 establishes that your security deposit remains your money throughout the tenancy and cannot be treated as the landlord's asset. If you have reason to believe a landlord has commingled or misappropriated your deposit, this provision may be relevant to any dispute you raise before a court or housing authority. Tenant-rights organizations in New York can help you understand the general enforcement paths available under this rule.
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 9, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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