New Jersey § 46:8-20

§ 46:8-20.

Any person, whether the owner or lessee of the property leased, who or which has or

hereafter shall have received from a tenant or licensee a sum of money as a deposit

or advance of rental as security for the full performance by such tenant or licensee

of the terms of his contract, lease or license agreement, or who or which has or shall

have received the same from a former owner or lessee, shall, upon conveying such property

or assigning his or its lease to another, or upon the conveyance of such property

to another person by a court in an action to foreclose a mortgage thereon, at the

time of the delivery of the deed or instrument of assignment, or within five days

thereafter, or in the event of the insolvency or bankruptcy of the person receiving

said deposit, within five days after the making and entry of an order of the court

discharging the receiver or trustee, deal with the security deposit by turning over

to his or its grantee or assignee, or to the purchaser at the foreclosure sale the

sum so deposited, plus the tenant's portion of the interest or earnings accumulated

thereon, and notify the tenant or licensee by registered or certified mail of such

turning over and the name and address of such grantee, assignee or purchaser. Notwithstanding any other provision of law to the contrary, it shall be the duty and

obligation of the grantee, assignee or purchaser to obtain from the grantor who is

the owner or lessee at the time of the transfer, conveyance or purchase any and all

security deposits, plus accrued interest on the deposits, that the owner or lessee

received from a tenant, licensee or previous owner or lessee, and which deposits were

invested, or should have been invested, in the manner required by section 1 of P.L.

1967, c. 265 ( C.46:8-19 ).