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P rented a hotel from D for 15 years. A security deposit of $65,000 was required, and that was to be refunded at the rate of $3,000 per year starting in four years (the balance paid over at the contract termination) provided there was full compliance with the contract terms. P sued D for recovery of the security deposit as D commingled those funds. P relied on a New York statute that required the funds to be put in trust. D claimed that the statute did not govern as the property was located in New Jersey. D won, and P appealed.

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