(III) Is an amount the landlord knew or should have known exceeded the
actual damages the landlord incurred or would incur; or
(IV) Is retained solely or in part for an unlawful, retaliatory, or discriminatory
purpose.
(b) An amount retained by a landlord is presumed to unreasonably exceed
the amount of actual damages the landlord incurred if the amount retained is one
hundred twenty-five percent or greater than the actual damages incurred. Nothing
in this subsection (3.5)(b) prevents a court or jury from finding that a lesser amount
retained by a landlord unreasonably exceeds the amount of actual damages the
landlord incurred.
(c) In a court action brought by a tenant under this section, the landlord
bears the burden of proving the amount of actual damages the landlord incurred.
(d) If a landlord retains a security deposit or any portion of it in good faith
and otherwise complies with all requirements of this section but is found in a civil
action to have reasonably retained an amount that exceeded the actual damages
the landlord incurred, the landlord shall be liable to the tenant only for the excess
amount retained and court costs.
(4) [Editor's note: This version of the introductory portion of subsection (4) is
effective until January 1, 2026.] Upon cessation of his interest in the dwelling unit,
whether by sale, assignment, death, appointment of a receiver, or otherwise, the
person in possession of the security deposit, including but not limited to the
landlord, his agent, or his executor, shall, within a reasonable time: