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ReclaimDeposit

NCGS § 42-50: The deposit must be placed in a trust account with a licensed, federally insured depository institution or an authorized trust institution, or backed by a qualifying North Carolina insurance-company bond; an out-of-state trust account requires an adequate bond

Compare this North Carolina source with your dates, records, and the conditions that apply to your rental.

Reviewed: 2026-08-11

How sources are checked →

Deadline context

30 days

Possible remedy

Actual damages; fees possible for willful violation

Primary statute

NCGS § 42-50 to 42-56 (Tenant Security Deposit Act)

Official section source

What the cited source addresses

The deposit must be placed in a trust account with a licensed, federally insured depository institution or an authorized trust institution, or backed by a qualifying North Carolina insurance-company bond; an out-of-state trust account requires an adequate bond.

Read the current official section

How to review this source with your facts

  • Capture all dates and documents tied to this statutory requirement.
  • Read the current official text, coverage, exceptions, and definitions.
  • Keep any written request factual and preserve the response.

Frequently asked questions

Questions to compare with the current source before using the citation in a letter or filing.

What does NCGS § 42-50 address?

The deposit must be placed in a trust account with a licensed, federally insured depository institution or an authorized trust institution, or backed by a qualifying North Carolina insurance-company bond; an out-of-state trust account requires an adequate bond. Open the current official text to check coverage, definitions, and exceptions for your situation.

How long does a North Carolina landlord have to return the deposit?

30 days for an itemization or interim accounting; a final accounting may be due within 60 days if the claim cannot yet be determined (30 days).

Could a penalty or other remedy apply?

Noncompliance can void the right to retain the deposit and support actual damages; a court may award attorney fees for willful noncompliance. Check the source's required facts, conditions, notices, defenses, and remedy language before relying on it.

Next steps

Check the current source, calculate the relevant dates, and organize the records you may reference.

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