N.D.C.C. §§ 47-16-01 through 47-16-30.1, 47-16-31 through 47-16-35, 47-16-42 § 47-16-07.1

   47-16-07.1. Real property and dwelling security deposits - Limitations and
requirements.
    1. The lessor of real property or a dwelling who requires money as a security deposit,
        however denominated, shall deposit the money in a federally insured interest-bearing
        savings or checking account for the benefit of the tenant. The security deposit and any
        interest accruing on the deposit must be paid to the lessee upon termination of a
        lease, subject to the conditions of subsection 2. A lessor may not demand or receive
        security, however denominated, in an amount or value in excess of one month's rent,
        except:
        a. A lessor may accept an amount or value up to two month's rent, as security, from
              an individual convicted of a felony offense as an incentive to rent the property to
              the individual.
        b. A lessor may demand an amount or value up to two months rent, as security,
              from an individual who has had a judgment entered against that individual for
              violating the terms of a previous rental agreement.
    2. A lessor may charge a lessee a pet security deposit for keeping an animal that is not a
        service animal or companion animal required by a tenant with a disability as a
        reasonable accommodation under fair housing laws. A pet security deposit may not
        exceed the greater of two thousand five hundred dollars or an amount equivalent to
        two months' rent.
    3. A lessor may apply security deposit money and accrued interest upon termination of a
        lease towards:
        a. Any damages the lessor has suffered by reason of deteriorations or injuries to the
              real property or dwelling by the lessee's pet or through the negligence of the
              lessee or the lessee's guest.
        b. Any unpaid rent.



         c.   The costs of cleaning or other repairs which were the responsibility of the lessee,
              and which are necessary to return the dwelling unit to its original state when the
              lessee took possession, reasonable wear and tear excepted.
         Application of any portion of a security deposit not paid to the lessee upon termination
         of the lease must be itemized by the lessor. Such itemization together with the amount
         due must be delivered or mailed to the lessee at the last address furnished lessor,
         along with a written notice within thirty days after termination of the lease and delivery
         of possession by the lessee. The notice must contain a statement of any amount still
         due the lessor or the refund due the lessee. A lessor is not required to pay interest on
         security deposits if the period of occupancy was less than nine months in duration. Any
         amounts not claimed from the lessor by the lessee within one year of the termination
         of the lease agreement are subject to the reporting requirements of section
         47-30.2-04.
    4.   A lessor is liable for treble damages for any security deposit money withheld without
         reasonable justification.
    5.   Upon a transfer in ownership of the leased real property or dwelling, the security
         deposit and accrued interest shall be transferred to the grantee of the lessor's interest.
         The grantor shall not be relieved of liability under this section until transfer of the
         security deposit to the grantee. The holder of the lessor's interest in the real property
         or dwelling at the termination of a lease shall be bound by this section even though
         such holder was not the original lessor who received the security deposit.
    6.   This section applies to the state and to political subdivisions of the state that lease real
         property or dwellings and require money as a security deposit.