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Record #: O2015-1502   
Type: Ordinance Status: Failed to Pass
Intro date: 3/18/2015 Current Controlling Legislative Body: Committee on Housing and Real Estate
Final action: 5/20/2015
Title: Amendment of Municipal Code Chapter 5-12-080 regarding security deposits on residential property leases
Sponsors: Reilly, Brendan, Hairston, Leslie A., Willie B. Cochran, Laurino, Margaret, Moore, Joseph, O'Connor, Mary, Arena, John, Smith, Michele, Tunney, Thomas, Waguespack, Scott
Topic: MUNICIPAL CODE AMENDMENTS - Title 5 - Housing & Economic Development - Ch. 12 Residential Landlords & Tenants
Attachments: 1. O2015-1502.pdf
Related files: R2015-407

Section 1. Title 5 of the Municipal Code of the Chicago is hereby amended by adding and deleting the following sections to Chapter 5-12-080 as follows.

5-12-080 Security deposits.
(1) A landlord shall hold all security deposits received by him in a federally insured interest-bearing account in a bank, savings and loan association or other financial institution located in the State of Illinois. A security deposit and interest due thereon shall continue to be the property of the tenant making such deposit, shall not be commingled with the assets of the landlord, and shall not be subject to the claims of any creditor of the landlord or of the landlord's successors in interest, including a foreclosing mortgagee or trustee in bankruptcy.

Notwithstanding subsection (a)(1), a landlord may accept the payment of the first month's rent and security deposit in one check or one electronic funds transfer, and deposit the check or electronic funds transfer into one account, if within 5 business days of the acceptance of the check or electronic transfer, the landlord transfers the amount ofthe security deposit into a separate account that complies with subsection (a)(1).
The name and address of the financial institution where the security deposit will be deposited shall be clearly and conspicuously disclosed in the written rental agreement signed by the tenant. If no written rental agreement is provided, the landlord shall, within 14 days of receipt of the security deposit, notify the tenant in writing of the name and address of the financial institution where the security deposit was deposited.
If, during the pendency of the rental agreement, a security deposit is transferred from one financial institution to another, the landlord shall, within 14 days of such transfer, notify the tenant in writing of the name and address ofthe new financial institution.
Notwithstanding, subsection (a)(1),. a.landlord shall n...

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