(1)A landlord shall require a tenant to pay a security deposit for the purposes of securing the performance by the tenant of the obligations of the tenant under the tenancy.

(2)A landlord shall not require more than one security deposit or require the payment of, or receive, under a security deposit, an amount exceeding the rent payable for one month's occupancy of the premises to which the agreement relates or one-twelfth of the rent for one year's occupancy of the premises to which the agreement relates, whichever is the esser.

(3)The landlord shall specify to the tenant in writing the terms and conditions under which the security deposit or any part of the security deposit may be withheld by the landlord upon termination of the tenancy.

(4)Without limiting the general effect of subsection (3), a security deposit shall not be withheld on account of normal wear and tear resulting from ordinary use of the premises.

(5)The landlord shall provide the tenant with a written receipt for the security deposit.

(6)Where, during a tenancy, the status of landlord is transferred to another person, the security deposit shall be transferred and the successor landlord shall notify the tenant of the change.

(7)Where, during the tenancy, the premises occupied by the tenant are foreclosed upon and the deposit of the tenant is not transferred to the successor owner after the foreclosure sale or other transfer of the property from the foreclosed-upon owner to a successor, the foreclosed-upon owner shall promptly refund the full deposit to the tenant immediately after the foreclosure sale or transfer.