Sec. 1. 14 MRSA §6038, as amended by PL 1981, c. 428, §12, is further amended to read:

§6038. Treatment of security deposit

During the term of a tenancy, a security deposit given to a landlord as part of a residential rental agreement shall may not be treated as an asset to be commingled with the assets of the landlord. All security deposits received after October 1, 1979, shall must be held in an account of a bank or other financial institution under such terms as will that place the security deposit beyond the claim of creditors of the landlord, including a foreclosing mortgagee or trustee in bankruptcy, and as will that provide for transfer of the security deposit to a subsequent owner of the dwelling unit. Upon sale of a building, all responsibility for maintaining and returning security deposits to tenants is transferred to the new landlord. Upon request by his a tenant, a landlord shall disclose the name of the institution and the account number where the security deposit is being held. A landlord may use a single escrow account to hold security deposits from all of his the tenants.

SUMMARY

This bill makes certain that tenants can recover their security deposit from a new owner. This bill is the recommendation of the Attorney General.