New Paltz Village, N.Y., Code of Ordinances ch. 129 (eCode360 ed. 2026) § 129-16
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 repaid or rightfully 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 Village Code ch. 129 § 129-16, a security deposit never legally becomes the landlord's own money. From the moment a tenant hands over a security deposit, those funds remain the tenant's property and must be held in trust by the landlord until they are either returned or legitimately applied to a valid tenant obligation. The landlord is prohibited from mixing those funds with personal or business accounts or treating them as a general asset.
Plain English — not legal advice.
Operators subject to New Paltz Village Code ch. 129 § 129-16 generally maintain security deposit funds in a dedicated trust or escrow account that is kept entirely separate from operating accounts and personal finances. Compliant landlords treat these funds as belonging to the tenant at all times, applying them only to documented, legitimate obligations and returning any remainder promptly. Keeping clear records of the separate account and any authorized deductions supports demonstrable compliance with the trust requirement.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
New Paltz Village Code ch. 129 § 129-16 establishes that your security deposit remains your money throughout the tenancy and cannot be absorbed into a landlord's personal or business finances. If a landlord commingles deposit funds or refuses to return them without a valid basis, this provision may be relevant to a complaint or legal proceeding. Tenants who believe this trust requirement has been violated may consider contacting a local tenant-rights organization or the appropriate municipal authority for guidance on 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 9, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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