HomeMy WebLinkAboutORDINANCES-2002-081-O-0208/13/2002
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AN ORDINANCE
Amending Section 5-3-5-1 of the Evanston City Code
Pertaining to the Interest Rate on Security Deposits
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF EVANSTON,
COOK COUNTY, ILLINOIS:
SECTION 1: That Section 5-3-5-1 of the Evanston City Code, 1979, as
amended, is further amended by deleting the existing subsection (B) in its entirety and
substituting in lieu thereof the following new subsection:
5-3-5-1: SECURITY DEPOSITS AND PREPAID RENT:
(B) Effective October 1, 2002, a landlord who receives security or
• prepaid rent from a tenant shall pay interest to the tenant at the rate
equal to the interest rate paid on such security deposits in the City
of Chicago. Interest on security deposits on leases commencing
prior to October 1, 2002, shall be paid at a rate of four percent (4%)
per year through December 31, 1975, and five percent (5%) per
year from January 1, 1976 through September 30, 2002. A
landlord shall pay to the tenant interest on all deposits within thirty
(30) days after the end of each twelve (12) month rental period, by
cash or credit to be applied to the rent due, except when the tenant
is in default under the terms of the rental agreement. Interest on
that portion of a security deposit or prepaid rent exceeding one
month's rent, if paid in installments, shall not be computed until all
installments are paid to the landlord.
SECTION 2: That Section 5-3-5-1 of the Evanston City Code, 1979, as amended,
is further amended by adding the following new subsection (D) and relettering current
subsections (D) and (E) as subsections (F) and (G):
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81-0-02
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5-3-5-1: SECURITY DEPOSITS AND PREPAID RENT:
(D) A landlord shall hold all security deposits received by him or her 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.
SECTION 3: That Section 5-3-5-1 of the Evanston City Code, 1979, as amended,
is further amended by adding the following new subsection (E):
(E) The City shall cause the new rate of security deposit interest to be
published once a week for two consecutive weeks in two or more
newspapers of general circulation in the City. The City Manager
shall direct the Human Relations Department to prepare and
publish for free public distribution at government offices and •
libraries, a pamphlet or brochure describing the respective rights,
obligations and remedies of landlords and tenants with respect to
security deposits, including the new interest rate as well as the
interest rate for each of the prior two years. Said pamphlet shall
also be available on the City's website.
SECTION 4: That all ordinances or parts of ordinances in conflict herewith are
hereby repealed.
SECTION 5: That this ordinance shall be in full force and effect from and after its
passage, approval, and publication in the manner provided by law.
Introduced: ,�.(,1 _���t:�-�i , 2002
Adopted: 2002
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ATTEST:
V Corporation Counsel
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A pr d:�e4t.24JXt
Mayor
81-0-02
1G , 2002