Section 7-103. Money deposited or advanced for use or rental of real property; waiver void; administration expenses

1. Whenever money  shall  be  deposited or advanced on a contract or license agreement for the use
  or rental of real property as security for performance of  the  contract
  or  agreement  or  to  be  applied  to  payments  upon  such contract or
  agreement when due, such money, with interest accruing thereon, if  any,
  until repaid or so applied, shall continue to be the money of the person
  making  such deposit or advance and shall be held in trust by the person
  with whom such deposit or advance shall be made and shall not be mingled
  with the personal moneys or become an asset of the person receiving  the
  same,  but  may  be  disposed  of  as  provided in section 7-105 of this
  chapter.
    2. Whenever the person receiving money so deposited or advanced  shall
  deposit  such  money  in  a  banking  organization,  such  person  shall
  thereupon notify in writing each of the  persons  making  such  security
  deposit  or  advance,  giving  the  name  and  address  of  the  banking
  organization in which the deposit of security money  is  made,  and  the
  amount  of  such deposit. Deposits in a banking organization pursuant to
  the  provisions  of  this  subdivision  shall  be  made  in  a   banking
  organization  having a place of business within the state. If the person
  depositing such security money in a banking organization  shall  deposit
  same in an interest bearing account, he shall be entitled to receive, as
  administration expenses, a sum equivalent to one per cent per annum upon
  the  security  money  so  deposited, which shall be in lieu of all other
  administrative and custodial expenses. The balance of the interest  paid
  by  the banking organization shall be the money of the person making the
  deposit or advance and shall either be held in trust by the person  with
  whom  such deposit or advance shall be made, until repaid or applied for
  the use or rental of the leased premises, or annually paid to the person
  making the deposit of security money.
    2-a. Whenever the money so deposited or advanced is for the rental  of
  property  containing  six  or  more  family  dwelling  units, the person
  receiving such money shall, subject to the provisions of  this  section,
  deposit  it  in  an  interest  bearing account in a banking organization
  within the state which account shall earn interest at a rate which shall
  be the prevailing rate earned by other such deposits made  with  banking
  organizations in such area.
    2-b.  In the event that a lease terminates other than at the time that
  a banking organization in such area regularly pays interest, the  person
  depositing  such  security  money  shall  pay  over  to  his tenant such
  interest as he is able to collect at the date of such lease termination.
    3. Any provision of such a contract or agreement whereby a person  who
  so  deposits  or  advances money waives any provision of this section is
  absolutely void.
    4. The term "real property" as used in this section is co-extensive in
  meaning with lands, tenements and hereditaments.