Sec. 47a-21. Security deposits.
Sec. 47a-21. Security deposits. (a) Definitions. As used in this chapter:
(1) "Commissioner" means the Banking Commissioner.
(2) "Escrow account" means any account at a financial institution which is not
subject to execution by the creditors of the person in whose name such account is maintained and includes a clients' funds account.
(3) "Escrow agent" means the person in whose name an escrow account, including
a clients' funds account, is maintained.
(4) "Financial institution" means any state bank and trust company, national bank,
savings bank, federal savings bank, savings and loan association, and federal savings
and loan association that is located in this state.
(5) "Forwarding address" means the address to which a security deposit may be
mailed for delivery to a former tenant.
(6) "Landlord" means any landlord of residential real property, and includes (A)
any receiver; (B) any person who is a successor to a landlord or to a landlord's interest;
and (C) any tenant who sublets his premises.
(7) "Receiver" means any person who is appointed or authorized by any state, federal or probate court to receive rents from tenants, and includes trustees, executors,
administrators, guardians, conservators, receivers, and receivers of rent.
(8) "Rent receiver" means a receiver who lacks court authorization to return security
deposits and to inspect the premises of tenants and former tenants.
(9) "Residential real property" means real property containing one or more residential units, including residential units not owned by the landlord, and containing one or
more tenants who paid a security deposit.
(10) "Security deposit" means any advance rental payment other than an advance
payment for the first month's rent and a deposit for a key or any special equipment.
(11) "Successor" to a landlord or to a landlord's interest means any person who
succeeds to a landlord's interest whether by purchase, foreclosure or otherwise and
includes a receiver.
(12) "Tenant" means a tenant, as defined in section 47a-1, or a resident, as defined
in section 21-64.
(13) "Tenant's obligations" means (A) the amount of any rental or utility payment
due the landlord from a tenant; and (B) a tenant's obligations under the provisions of
section 47a-11.
(b) Amount of security deposit. (1) In the case of a tenant under sixty-two years
of age, a landlord shall not demand a security deposit in an amount or value in excess
of two months' periodic rent which may be in addition to the current month's rent.
(2) In the case of a tenant sixty-two years of age or older, a landlord shall not demand
a security deposit in an amount or value in excess of one month's periodic rent, which
may be in addition to the current month's rent. Upon the request of a tenant sixty-two
years of age or older, any landlord who has received from such tenant a security deposit
in an amount or value in excess of one month's periodic rent shall refund to such tenant
the portion of such security deposit that exceeds one month's periodic rent.
(c) Exemption from attachment and execution. Assignment to successor. Any
security deposit paid by a tenant shall remain the property of such tenant in which the
landlord and his successor shall have a security interest, as defined in subdivision (35)
of subsection (b) of section 42a-1-201, to secure such tenant's obligations. A security
deposit shall be exempt from attachment and execution by the creditors of the landlord
or his successor and shall not be considered part of the estate of the landlord or his
successor in any legal proceeding. Any voluntary or involuntary transfer of a landlord's
interest in residential real estate to a successor shall constitute an assignment to such
successor of such landlord's security interest in all security deposits paid by tenants of
such transferred residential real estate.
(d) Payment of security deposit and interest at termination of tenancy.
(1) Within the time specified in subdivisions (2) and (4) of this subsection, the person
who is the landlord at the time a tenancy is terminated, other than a rent receiver, shall
pay to the tenant or former tenant: (A) The amount of any security deposit that was
deposited by the tenant with the person who was landlord at the time such security
deposit was deposited less the value of any damages which any person who was a
landlord of such premises at any time during the tenancy of such tenant has suffered as
a result of such tenant's failure to comply with such tenant's obligations; and (B) any
accrued interest due on such security deposit as required by subsection (i) of this section.
If the landlord at the time of termination of a tenancy is a rent receiver, such rent receiver
shall return security deposits in accordance with the provisions of subdivision (3) of
this subsection.
(2) Upon termination of a tenancy, any tenant may notify his landlord in writing of
such tenant's forwarding address. Within thirty days after termination of a tenancy, each
landlord other than a rent receiver shall deliver to the tenant or former tenant at such
forwarding address either (A) the full amount of the security deposit paid by such tenant
plus accrued interest as provided in subsection (i) of this section, or (B) the balance of
the security deposit paid by such tenant plus accrued interest as provided in subsection
(i) of this section after deduction for any damages suffered by such landlord by reason
of such tenant's failure to comply with such tenant's obligations, together with a written
statement itemizing the nature and amount of such damages. Any such landlord who
violates any provision of this subsection shall be liable for twice the amount or value
of any security deposit paid by such tenant, except that, if the violation is the failure to
deliver the accrued interest, such landlord shall only be liable for twice the amount of
such accrued interest.
(3) (A) Any receiver who is authorized by the court appointing him receiver to
return security deposits and to inspect the premises of any tenant shall pay security
deposits and interest in accordance with the provisions of subdivisions (1) and (2) of
this subsection from the operating income of such receivership to the extent that any
such payments exceed the amount in any escrow accounts for such tenants. (B) Any
rent receiver shall present any claim by any tenant for return of a security deposit to the
court which authorized him to be a rent receiver. Such court shall determine the validity
of any such claim and shall direct such rent receiver to pay from the escrow account or
from the operating income of such property the amount due such tenant as determined
by such court.
(4) Any landlord who does not have written notice of his tenant's or former tenant's
forwarding address shall deliver any written statement and security deposit due to the
tenant, as required by subdivision (2) of this subsection, within the time required by
subdivision (2) of this subsection or within fifteen days after receiving written notice
of such tenant's forwarding address, whichever is later.
(e) Liability of receiver and successor to landlord's interest in property re payment of security deposit. A successor, other than a receiver, to a landlord's interest in
residential real property shall be liable for the claims of tenants of such property for
return of any part of such security deposit which is or becomes due to such tenant during
the time such successor is a landlord. A receiver's liability for payment of security
deposits and interest under this section shall be limited to the balance in any escrow
account for such tenants maintained by such receiver in such receivership in accordance
with subsection (h) of this section and to the operating income generated in such receivership.
(f) Nonresident landlord. Any landlord who is not a resident of this state shall
appoint in writing the Secretary of the State as his attorney upon whom all process in
any action or proceeding against such landlord may be served.
(g) Action to reclaim security deposit. Any person may bring an action in replevin
or for money damages in any court of competent jurisdiction to reclaim any part of his
security deposit which may be due. This section does not preclude the landlord or tenant
from recovering other damages to which he may be entitled.
(h) Escrow deposit. (1) Each landlord shall immediately deposit the entire amount
of all security deposits received by him on or after October 1, 1979, from his tenants
into one or more escrow accounts for such tenants in a financial institution. Such landlord
shall be escrow agent of such account. Within seven days after a written request by
the commissioner for the name of each financial institution in which any such escrow
accounts are maintained and the account number of each such escrow account, a landlord
shall deliver such requested information to the commissioner.
(2) Each landlord and each successor to the landlord's interest shall maintain each
such account as escrow agent and shall not withdraw the amount of any security deposit
or accrued interest on such amount, as provided in subsection (i) of this section, that is
in any escrow account from such account except as provided in this section.
(3) (A) Whenever any real estate is voluntarily or involuntarily transferred from a
landlord, other than a receiver, to his successor, including a receiver, such landlord shall
withdraw from the escrow account and deliver to his successor the entire amount of
security deposits paid by tenants of the property being transferred, plus accrued interest
provided for in subsection (i) of this section. If at the time of transfer of such real estate
the funds in such account are commingled with security deposits paid by tenants in real
estate not being transferred to such successor, and if at such time the funds in such
account are less than the amount of security deposits paid by all tenants whose security
deposits are contained in such account, such landlord shall deliver to such successor a
pro rata share of security deposits paid by tenants of the real estate being transferred to
such successor. Any successor to a landlord shall immediately deposit the entire amount
of funds delivered to him in accordance with this subdivision into an escrow account
as provided in subdivision (l) of this subsection and shall maintain such account as
escrow agent in accordance with the provisions of this section. (B) Whenever any real
estate is transferred from a receiver to his successor, such receiver shall dispose of the
escrow accounts as ordered by the court which appointed him receiver. The order of
such court shall provide for the priority of the present and future rights of tenants to
security deposits paid by them over the rights of any secured or unsecured creditor of
any person and shall provide that the funds in such account shall be delivered to the
successor of such receiver for immediate deposit in an escrow account for tenants who
paid security deposits.
(4) No person shall withdraw funds from any escrow account except as follows:
(A) Within the time specified in subsection (d) of this section, each escrow agent shall
withdraw and disburse the amount of any security deposit due to any tenant upon the
termination of such tenancy, in accordance with subsection (d) of this section, together
with accrued interest thereon as provided in subsection (i) of this section. (B) At the
time provided for in subsection (i) of this section, each escrow agent shall withdraw
from such account and pay to each tenant any accrued interest due and payable to any
tenant in accordance with the provisions of said subsection. (C) The escrow agent may
withdraw and personally retain interest credited to and not previously withdrawn from
such account to the extent such interest exceeds the amount of interest being earned by
tenants as provided in subsection (i) of this section. (D) The escrow agent may withdraw
and personally retain the amount of damages withheld, in accordance with the provisions
of subsection (d) of this section, from payment of a security deposit to a tenant. (E) The
escrow agent may at any time during a tenancy withdraw and pay to a tenant all or any
part of a security deposit together with accrued interest on such amount as provided in
subsection (i) of this section. (F) The escrow agent shall withdraw and disburse funds
in accordance with the provisions of subdivision (3) of this subsection. (G) The escrow
agent may transfer any escrow account from one financial institution to another and
may transfer funds from one escrow account to another provided that all security deposits
in escrow accounts remain continuously in escrow accounts.
(i) Payment of interest on security deposits. (1) On and after July 1, 1993, each
landlord other than a landlord of a residential unit in any building owned or controlled
by any educational institution and used by such institution for the purpose of housing
students of such institution and their families, and each landlord or owner of a mobile
manufactured home or of a mobile manufactured home space or lot or park, as such
terms are defined in subdivisions (1), (2) and (3) of section 21-64, shall pay interest on
each security deposit received by him at a rate of not less than the average rate paid, as
of December 30, 1992, on savings deposits by insured commercial banks as published
in the Federal Reserve Board Bulletin rounded to the nearest one-tenth of one percentage
point, except in no event shall the rate be less than one and one-half per cent. On and
after January 1, 1994, the rate for each calendar year shall be not less than the deposit
index, as defined in subdivision (2) of this subsection, for that year, except in no event
shall the rate be less than one and one-half per cent. On the anniversary date of the
tenancy and annually thereafter, such interest shall be paid to the tenant or resident or
credited toward the next rental payment due from the tenant or resident, as the landlord
or owner shall determine. If the tenancy is terminated before the anniversary date of
such tenancy, or if the landlord or owner returns all or part of a security deposit prior
to termination of the tenancy, the landlord or owner shall pay the accrued interest to the
tenant or resident within thirty days of such termination or return. In any case where a
tenant or resident has been delinquent for more than ten days in the payment of any
monthly rent, he shall forfeit any interest which would otherwise be payable to him for
that month, except that there shall be no such forfeiture if, pursuant to a provision of
the rental agreement, a late charge is imposed for failure to pay such rent within the
time period provided by section 47a-15a. No landlord or owner shall increase the rent
due on any quarters or property subject to the provisions of this section because of the
requirement that interest be paid on any security deposit made with respect to such
quarters or property.
(2) The commissioner shall publish the rate that takes effect July 1, 1993, in the
Department of Banking news bulletin no later than July 15, 1993. The deposit index for
each calendar year shall be equal to the average rate paid on savings deposits by insured
commercial banks as last published in the Federal Reserve Board Bulletin in November
of the prior year. The commissioner shall determine the deposit index for each calendar
year and publish such deposit index in the Department of Banking news bulletin no later
than December fifteenth of the prior year. The commissioner shall also cause such rates
to be disseminated in a manner designed to come to the attention of landlords and tenants
including, but not limited to, the issuance of press releases and public service announcements, the encouragement of news stories in the mass media and the posting of conspicuous notices at financial institutions. For purposes of this subsection, "Federal Reserve
Board Bulletin" means the monthly survey of selected deposits published as a special
supplement to the Federal Reserve Statistical Release Publication H.6 published by the
Board of Governors of the Federal Reserve System or, if such bulletin is superseded or
becomes unavailable, a substantially similar index or publication.
(j) Investigation of complaints by commissioner. Order. Enforcement. Regulations. (1) The commissioner may receive and investigate complaints regarding any
alleged violation of subsections (b), (d), (h) or (i) of this section, provided the commissioner shall not have jurisdiction over the refusal or other failure of any landlord to
return all or part of a security deposit if such failure results from the landlord's good
faith claim that the landlord has suffered damages as a result of a tenant's failure to
comply with such tenant's obligations whether or not the existence or amount of alleged
damages is disputed by the tenant. For purposes of this section a good faith claim is
deemed to be a claim for actual damages suffered by the landlord for which written
notification of such damages has been given to the tenant in accordance with the provisions of subdivisions (1), (2) and (4) of subsection (d) of this section. For the purposes
of such investigation, any person who is or was a landlord shall be subject to the provisions of section 36a-17.
(2) If the commissioner determines that any landlord has violated any provision of
this section over which the commissioner has jurisdiction, the commissioner may, in
accordance with section 36a-52, order such person to cease and desist from such practices and to comply with the provisions of this section.
(3) The commissioner may adopt regulations, in accordance with chapter 54, to
carry out the purposes of this section.
(k) Penalties. (1) Any person who is a landlord at the time of termination of a
tenancy and who knowingly and wilfully fails to pay all or any part of a security deposit
when due shall be subject to a fine of not more than two hundred fifty dollars for each
offense, provided it shall be an affirmative defense under this subdivision that such
failure was caused by such landlord's good faith belief that he was entitled to deduct
the value of damages he has suffered as a result of such tenant's failure to comply with
such tenant's obligations.
(2) Any person who knowingly and wilfully violates the provisions of subsection
(h) of this section on or after October 1, 1979, shall be subject to a fine of not more than
five hundred dollars or imprisonment of not more than thirty days or both for each
offense. It shall be an affirmative defense under the provisions of this subdivision that
at the time of the offense, such person leased residential real property to fewer than four
tenants who paid a security deposit.
(3) Any person who is a landlord at the time an interest payment is due under the
provisions of subsection (i) of this section and who knowingly and wilfully violates the
provisions of such subsection shall be subject to a fine of not more than one hundred
dollars for each offense.
(4) No financial institution shall be liable for any violation of this section except
for any violation in its capacity as a landlord or successor to a landlord's interest.
(l) Rights not limited. Nothing in this section shall be construed as a limitation
upon: (1) The power or authority of the state, the Attorney General or the commissioner
to seek administrative, legal or equitable relief permitted by the general statutes or at
common law; or (2) the right of any tenant to bring a civil action permitted by the general
statutes or at common law.
(P.A. 76-95, S. 5, 27; 76-435, S. 75, 82; P.A. 77-451, S. 3; P.A. 79-559, S. 1; P.A. 80-483, S. 171, 186; P.A. 81-322,
S. 8; P.A. 82-162, S. 4; 82-246, S. 1; 82-249; June Sp. Sess. P.A. 83-3, S. 1; P.A. 84-84, S. 1, 2; 84-504, S. 2, 3; 84-546,
S. 105, 166, 173; P.A. 85-231; 85-613, S. 74, 154; P.A. 87-9, S. 2, 3; 87-154, S. 1; 87-348; P.A. 88-230, S. 1, 12; P.A. 90-98, S. 1, 2; P.A. 91-383, S. 17; P.A. 92-4, S. 1; P.A. 93-40; 93-41, S. 2, 3; 93-142, S. 4, 7, 8; 93-339, S. 1, 2; 93-435, S.
18, 95; P.A. 94-122, S. 337, 340; P.A. 96-74, S. 8; 96-271, S. 216, 254; P.A. 03-84, S. 36; P.A. 05-109, S. 54.)
History: P.A. 76-435 revised effective date section of P.A. 76-95, see history for Sec. 47a-1; P.A. 77-451 specified in
Subsec. (b) that landlord may deduct amount of rent due and owing; P.A. 79-559 essentially replaced existing provisions;
P.A. 80-483 substituted "judicial district of Hartford-New Britain" for "Hartford county" in Subsec. (j)(2); P.A. 81-322
made technical change; P.A. 82-162 amended Subsec. (i), applying provisions to owners and residents of mobile home
parks as well as to landlords and tenants under previously existing provisions; P.A. 82-246 amended Subsec. (i) to increase
interest from 4% to 5.25% and to provide that a tenant who makes a late rent payment loses interest for the month of the
late payment only where previously all interest was lost; P.A. 82-249 added Subsec. (b)(2) providing for a smaller maximum
security deposit for persons 62 years of age or older who meet certain income requirements, amending previous provisions
accordingly; June Sp. Sess. P.A. 83-3 changed term "mobile home" to "mobile manufactured home" in Subsec. (i); P.A.
84-84 amended Subsec. (a)(12) to include utility payments due the landlord in the definition of "tenant's obligations",
amended Subsec. (i) to change the word "lease" to "tenancy" and amended Subsec. (j) to define a good faith claim; P.A.
84-504 amended Subsec. (b) to delete income limitations which qualified tenants 62 years of age or older for a maximum
security deposit of one month's rent, effective with respect to any term of tenancy commencing on or after October 1,
1984; P.A. 84-546 made technical change in Subsec. (d)(1) and changed effective date of P.A. 84-504 from October 1,
1985, to October 1, 1984; P.A. 85-231 amended Subsec. (b)(2) to delete limitation that prohibited a landlord demanding
a security deposit in excess of one month's rent "for any term of tenancy commencing on or after October 1, 1984" and
to require a landlord who has received a security deposit from a tenant 62 years of age or older in excess of one month's
rent to refund such excess upon the request of the tenant; P.A. 85-613 made technical changes in Subsec. (j); pursuant to
P.A. 87-9 "banking commissioner" was changed editorially by the Revisors to "commissioner of banking"; P.A. 87-154
amended Subsec. (i) to provide that a tenant will not forfeit interest for being delinquent if pursuant to the rental agreement
a late charge is imposed for failure to pay rent within the statutory grace period; P.A. 87-348 amended Subsec. (d)(2) by
replacing provision which required a landlord to deliver a written notification of damages within 30 days and the balance
of the security deposit plus accrued interest and an itemized statement of damages within 60 days after termination of
tenancy with a provision requiring the return of the balance of the security deposit plus accrued interest after deduction
for damages together with an itemized statement of damages within 30 days after termination of tenancy; P.A. 88-230
replaced "judicial district of Hartford-New Britain" with "judicial district of Hartford", effective September 1, 1991; P.A.
90-98 changed the effective date of P.A. 88-230 from September 1, 1991, to September 1, 1993; P.A. 91-383 amended
Subsec. (a) by replacing "As used in this section" with "As used in this chapter", replacing in the definition of "landlord"
the words "living quarters in residential real property" with "residential real property", adding in the definition of "residential real property" the words "including residential units not owned by the landlord", and adding the definition of "tenant";
P.A. 92-4 amended Subsec. (i) to require interest at the rate of 4% on and after October 1, 1992, and at the rate of %.25%
on and after October 1, 1994; P.A. 93-40 amended Subsec. (c) to provide that a security deposit is exempt from attachment
and execution by the landlord's creditors and is not part of the landlord's estate; P.A. 93-41 amended Subsec. (j) to give
the banking commissioner authority to receive and investigate complaints about violations of the law limiting the amount
of security deposit a landlord can demand, effective May 5, 1993; P.A. 93-142 changed the effective date of P.A. 88-230
from September 1, 1993, to September 1, 1996, effective June 14, 1993; P.A. 93-339 amended Subsec. (i) by requiring
that on and after July 1, 1993, the interest rate be not less than the average rate paid as of December 30, 1992, on savings
deposits by insured commercial banks and that on and after January 1, 1994, the interest rate for each calendar year be not
less than the deposit index, with a minimum rate of 1.5%, and by adding Subdiv. (2) to require the commissioner to publish
the rate that takes effect July 1, 1993, no later than July 15, 1993, and to determine and publish the deposit index for each
calendar year no later than December fifteenth of the prior year and disseminate the rates in a manner designed to come
to the attention of landlords and tenants, effective July 1, 1993; P.A. 93-435 amended Subsec. (i) by making a technical
change, effective June 28, 1993; (Revisor's note: In 1995 the word "subsections" in Subsec. (j)(1) before the words "(d),
(h) or (i) of this section" was changed editorially by the Revisors to "subsection"); P.A. 94-122 amended Subsec. (j)(1)
by subjecting landlords to the provisions of Sec. 36a-17, authorizing commissioner to issue cease and desist orders under
Sec. 36a-52, deleting the hearing provisions in Subsec. (j)(2), and making technical changes, effective January 1, 1995;
P.A. 96-74 amended Subsec. (d)(2) to add provision limiting landlord's liability to twice the amount of the accrued interest
when the violation is the failure to deliver such accrued interest; P.A. 96-271 amended Subsec. (f) to delete provision that
specified "foreign corporation" as used in Subsecs.(a) and (c) of Sec. 33-400 includes any such landlord, effective January
1, 1997; P.A. 03-84 changed "Commissioner of Banking" to "Banking Commissioner" in Subsec. (a)(1), effective June
3, 2003; P.A. 05-109 amended Subsec. (c) by replacing reference to Sec. 42a-1-201(37) with reference to Sec. 42a-1-201(b)(35).
Cited. 32 CA 133.
Cited. 39 CS 289. Cited. 44 CS 544.
Subsec. (b):
Cited. 35 CS 126.
Subsec. (c):
Relates only to residential real property and, therefore, is inapplicable to case concerning commercial property. 74
CA 460.
Subsec. (d):
Subdiv. (2) cited. 5 CA 118; 44 CA 381; 45 CA 686. Because plaintiff did not provide defendant with a forwarding
address, as is required by the clear langauge of this section, court properly granted defendant's motion to strike in regard
to a claim for double damages. 80 CA 155.
Cited. 37 CS 27.
Subsec. (i):
Cited. 45 CA 686.