Section 7-107. Liability of a grantee or assignee for deposits made by tenants upon conveyance of rent stabilized dwelling units

1.  This  section  shall apply only to dwelling units subject to the New York city
  rent stabilization law of nineteen hundred sixty-nine or  the  emergency
  tenant protection act of nineteen seventy-four.
    2.  (a)  Any  grantee  or assignee of any dwelling unit referred to in
  subdivision one of this section shall be liable to a tenant for any  sum
  of  money or any other thing of value deposited as security for the full
  performance by such tenant of the terms of his lease, plus  any  accrued
  interest,  if  his  or  its  predecessor in interest was liable for such
  funds. Such liability shall attach  whether  or  not  the  successor  in
  interest  has,  upon  the conveyance of such dwelling unit, received the
  sum as deposited.
    (b) The liability of a receiver for payment of  any  security  deposit
  plus  accrued  interest pursuant to this subdivision shall be limited to
  the amount of such deposit actually turned over to him or it pursuant to
  subdivision one of section 7-105 of this chapter and  to  the  operating
  income  in  excess  of  expenses  generated  during his or its period of
  receivership.
    3. Any agreement by a lessee or tenant of a dwelling unit  waiving  or
  modifying his rights as set forth in this section shall be void.