"[w]henever the person receiving" a security deposit deposits the money in a banking
organization, "such person shall thereupon notify in writing each of the persons making such
security deposit . . . , giving the name and address of the banking organization in which the
deposit of security money is made, and the amount of such deposit." If a landlord does not timely
provide such written notice, the violation would create a rebuttable presumption that the funds
were commingled, [*11]which the landlord must rebut (Urban Soccer Inc. v Royal Wine Corp.,
53 Misc 3d 448, 461 n 10 [Sup Ct, NY County 2016], judgment entered 2016 WL
5548073 [NY Sup Ct, Aug. 22, 2016], affd 148 AD3d 576 [1st Dept 2017]).
The record shows that Landlord gave written notice at the earliest on November 2, 2017,
which is several years after Landlord allegedly made the deposits. Accordingly, this untimely
notice raises a presumption of commingling, which Landlord must rebut. Even if the court were
to find the records Landlord submitted as exhibit H admissible as business records under CPLR
4518, as Landlord urges, those records do not show that Landlord held the security deposit in a
separate account for the entire lease term. Rather, they show an initial deposit on November 13,
2007 in the amount of $10,830.00. The lease term began on June 1, 1996 and paragraph 34 of the
lease as well as the rider to the lease provide that Le Corset deposited with Landlord the sum of
$5,700 at signing (see Landlord's motion, exhibit E). Tenant assumed the lease on
December 7, 2006. Paragraph 13 of the assignment agreement provides as follows regarding the
security deposit:
"[Tenant] shall simultaneously herewith deposit with Landlord a check in the