Me. Rev. Stat. tit. 14, ch. 710-A § 6038
Treatment of security deposit
Operative Text
1. Requirements. During the term of a tenancy, a security deposit given to a landlord as part of a residential rental agreement may not be treated as an asset to be commingled with the assets of the landlord or any other entity or person. All security deposits received after October 1, 1979 must be held in an account of a bank or other financial institution under terms that place the security deposit beyond the claim of creditors of the landlord or any other entity or person, including a foreclosing mortgagee or trustee in bankruptcy, and that provide for transfer of the security deposit to a subsequent owner of the dwelling unit or to the tenant in accordance with section 6035 . Upon the transfer of the dwelling unit, the new owner shall assume all responsibility for maintaining and returning to tenants all security deposits accounted for and transferred pursuant to section 6035 . Upon request by a tenant, a landlord shall disclose the name of the institution and the account number where the security deposit is being held. A landlord may use a single escrow account to hold security deposits from all of the tenants. A landlord may use a single escrow account to hold security deposits from tenants residing in separate buildings if the buildings are owned by different entities as long as the different entities are substantially controlled or owned by a single landlord. 2. Remedies. Upon a finding by a court that a violation of this section has occurred, the tenant is entitled to recover from the landlord actual damages, $500 or the equivalent of one month's rent, whichever is greatest, together with the aggregate amount of costs and expenses reasonably incurred in connection with the action. The court may also award to the tenant reasonable attorney's fees. 3. Application. The provisions of subsection 2 apply to all security deposits collected by a landlord after June 1, 2010. As of October 1, 2010, the provisions of subsection 2 apply to all security deposits held by or on behalf of a landlord.
Maine law under 14 M.R.S. §§ 6031–6038 requires that residential security deposits be kept separate from a landlord's personal or business assets and held in a protected bank or financial institution account that creditors cannot reach. The funds must be transferable to a new property owner or returned to the tenant as outlined in section 6035, and landlords must disclose the institution name and account number upon a tenant's request. If a court finds a violation of these requirements, the tenant may recover the greatest of actual damages, $500, or one month's rent, plus costs and potentially attorney's fees.
Plain English — not legal advice.
Operators subject to 14 M.R.S. §§ 6031–6038 generally maintain security deposits in a dedicated, creditor-protected escrow account at a recognized bank or financial institution, keeping those funds entirely separate from operating accounts. A single escrow account may be used for multiple tenants or even multiple buildings under common ownership, provided the account structure satisfies the statute's segregation requirements. When a property is sold or transferred, compliant landlords ensure that all security deposit records and funds are properly accounted for and transferred to the new owner in accordance with section 6035, and they are prepared to provide tenants with the institution name and account number upon request.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 14 M.R.S. §§ 6031–6038, tenants have the right to know where their security deposit is being held and may request the name of the financial institution and the account number at any time. If a landlord fails to properly segregate or protect a security deposit as required by this provision, a court may award the tenant the greatest of actual damages, $500, or one month's rent, along with costs and potentially attorney's fees. Tenants who believe their deposit has been mishandled may consider consulting a tenant-rights organization or legal aid office to understand the range of options available, including raising a violation in court proceedings.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 22, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References In
Rules and statutes that cite this regulation