Where to keep security deposit.

[Rashad Ellis]

Hi. Forgive if this question sounds foolish. I bought a partly occupied 3 unit fixer upper in Irvington. I want to deposit the tenants' security deposit in an interest esrming account. I looked up the laws concerning (NJSA 46:8-19(a)(1)). The law says to deposit in a financial institute in the state of NJ. Also, that tenants must be notified of name and address of the bank, etc.. My question is, can it be deposited in a bank in NY as long as there are locations in NJ?. I dont see what the difference is. I am presently and mostly in NY as of now.

[Conor Brennan]

@Rashad Ellis I believe that if the unit is in NJ, you have to deposit the funds in a bank branch in NJ. This is how it works in MA at least, and I believe NY/NJ are the same.