Security Deposit Separation

[Jeremy Paschedag]

Over the weekend I heard third hand that, at least in Missouri, security deposits should be in a separate bank account than the main bank account. 

Supposedly it comes up if you're audited. 

I was told that you can use the same bank account for all security deposits. 

Anyone able to shed any light on this? 

[Roy N.]

Anytime you hold funds on behalf of another party - i.e. the security deposits are not yours - you should segregate those funds into a separate {trust,escrow} account.