Commercial Security Deposit Question
Hi All,

I am putting an office user into a space in a large residential tower (over 25 units) in Chicago. Chicago security deposit law states that landlords owning over 25 units of residential units must pay interest on security deposits.

My question is, since this office space is in the mezzanine level of a primarily (95%) residential building, is the landlord required to hold the security deposit in an interest bearing escrow account? Or even just pay interest if the deposit is placed into the building's operating account.

My argument to the attorney was that all security deposits for the residential tenants will be interest bearing as the building has over 25 units. If my clients commercial deposit is commingled with the residential deposits, it should also be interest bearing. If not, then it should be held in a separate account. 

Any thoughts? Experience? Interpretations?

Thanks!

EDIT: Law is silent/ambiguous about commercial deposits with landlords who are primarily residential
[{"id": "chhbz14", "text": "Wow, very interesting question.  I've been involved with quite a few units that would fall into this category but the question has never come up before.  Chicagoan here also, hi.\n\nIf I were a betting man (and I am) I would bet that the funds would most likely go into a non-interest bearing escrow account.  Even thought the building has over 25 units of residential your client is still a commercial entity and not an individual person, which is most likely who the original requirement was created for.\nI'm not an attorney but have quite a bit of experience in the commercial world.  Good luck though!\n\nPlease post if you reach a conclusion on this, I'd be very curious to know how it turns out.", "replies": [{"id": "chhprwv", "text": "Appreciate the input. The more digging I've done leads me to believe that the \"law follows the lease.\" Hopefully I will be able to achieve an interest bearing situation or a separate escrow account. Either one will work, I just don't want their security deposit floating around with all the residential deposits that ARE interest bearing.", "replies": [], "depth": 2}], "depth": 1}, {"id": "chhmptu", "text": "You shouldn't have to. It's not required in DC/MD/VA. ", "replies": [], "depth": 1}]