A landlord must hold all security deposits received in a federally
insured interest- bearing account in a bank, savings and loan association or
other financial institution located in the State of Illinois. The security
deposit and interest due shall continue to be the property of the tenant and must
not be commingled with the assets of the landlord.
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 money into one account, if within 5 business
days of the acceptance of the check or electronic transfer, the landlord
transfers the amount of the security deposit into a separate account.
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 rental agreement, a
security deposit is transferred from one financial institution to another, the
landlord must within 14 days of the transfer, notify the tenant in writing of
the name and address of the new financial institution.
Any landlord who receives a security
deposit from a tenant or prospective tenant must at the time provide a receipt
indicating the amount of the security deposit, the name of the person receiving
it and, in the case of an agent, the name of the landlord for whom the security
deposit is received, the date on which it is received, and a description of the
dwelling unit. The receipt must be signed by the person who received the deposit.
If the security
deposit is received by means of an electronic funds transfer, the landlord must
also provide an electronic receipt of the security deposit which provides an
electronic or digital signature of the person receiving the deposit.
A landlord who holds a security
deposit for more than six months shall pay interest to the tenant accruing from
the beginning date of the rental term specified in the rental agreement at the
rate determined in accordance with the interest rates set by the City of
Chicago Comptroller for the year in which the rental agreement was entered
into. The landlord shall, within 30 days after the end of each 12-month
rental period, pay to the tenant any interest, by cash or credit to be applied
to the rent due.
Posted by Bradford Miller Law, P.C.
134 N. LaSalle Street, Suite 1040
Chicago, IL 60602
312-238-9298
Offering free legal representation to homeowners seeking a short
sale
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