In People v. Horowitz (138 Misc. 794), will be found judicial comment on the increasingly large number of lessees concerned with this situation.
In Levinson v. Shapiro (238 App. Div. 158, supra), it was pointed out that in origin the security stipulation found in leases was for the benefit of the landlord and that, generally speaking, it was not deemed necessary to insert therein language to protect the tenant because the financial condition of the landlord ordinarily was a sufficient guarantee of the return to the tenant of the deposit at the expiration of the term and that the ovrnership of the realty was in itself an assurance.
But the court recognized that the assurance of return of the deposit to the tenant had become impaired, remarking (p. 162) “ During the present shrinkage in realty values in New York City, the financial stability of the landlord has in many instances been weakened ”.
And in Goodman v. Schached (144 Misc. 905), the court suggested remedial legislation to protect the tenants, similar to that enacted for the protection of laborers, materialmen, and the like, by creating a trust in the deposits of security under a lease.
This was the situation and condition which led to the passage of section 233 of the Beal Property Law and in enacting this statute the Legislature was dealing with deposits of security made under leases relating to real property located in this State; it was concerned with and was dealing with a condition and evil existing here and not elsewhere.