NCGS § 42-50 - Must be held in trust account at NC licensed bank or savings institution: North Carolina statute explainer

Plain-English explanation of escrow requirements with actionable next steps.

Reviewed: 2026-03-03

Reviewer: ReclaimDeposit legal research team

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Deadline context

30 days

Penalty context

Actual damages

Primary statute

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

Official section source

How to use this statute in your case

Capture all dates and documents tied to this statutory requirement.
Use the statute language verbatim in your written demand.
Escalate with organized evidence if the landlord does not cure.

Frequently asked questions

Quick answers to the questions renters usually have before citing this statute in a demand letter or court filing.

What does NCGS § 42-50 - Must be held in trust account at NC licensed bank or savings institution mean for North Carolina tenants?

This section governs escrow requirements and should be cited when disputing wrongful withholding under North Carolina law.

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

30 days after termination of tenancy (30 days).

What penalties can apply if my landlord violates NCGS § 42-50 - Must be held in trust account at NC licensed bank or savings institution?

No statutory penalty multiplier; actual damages only.

Next steps

Turn this citation into an actionable demand and timeline.

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