Art. 257e Code of Obligations - Security furnished by the tenant

1 Where the tenant of residential or commercial premises furnishes security in the form of cash or negotiable securities, the landlord must deposit it in a bank savings or deposit account in the tenant’s name.

2 In residential leases, the landlord is not entitled to ask for more than three months’ rent by way of security.

3 The bank may release such security only with the consent of both parties or in compliance with a final payment order or final decision of the court. On expiry of one year following the end of the lease, the tenant or lessee may request that the security be returned to him by the bank if no claim has been brought against him by the landlord or lessor.

4 The cantons may enact further provisions.