A knock on the door interrupts the banter of the cooperative’s board of directors, who are sitting around the living room of the president’s apartment. It’s the fourth member at the door, who will make up the quorum necessary for this month’s matters to be resolved. Before voting on the approval of an applicant or discussing the proposed capital improvements, the members want to finalize the lease of the commercial storefront owned by the cooperative. While none of the members are lawyers or landlords by trade, they nonetheless have managed to negotiate a simple 10 year lease of a gluten-free vegan smoothie health bar. The new lessee recently mailed a check for the security deposit which now sits in front of the board members. After some discussion, one of the unwitting members suggests depositing the security deposit check into an interest bearing account which he uses for his own personal motorcycle repair business. Although the board’s actions may appear legitimate on the surface, they are about to make a fatuous mistake which carries with it serious legal consequences.
Category: Security Deposits
February 19th, 2013 — 10:18am