I have an existing two-family home where the owner wants to upgrade the service and breakup branch circuits properly...lots of homeowner type wiring 'n shortcuts. Anyhow, there exists two meters outside and two separate main-breaker panels inside the basement. Right now there are two sisters living in the house, the sister who owns the house lives downstairs and has access to the basement and electric equip. through her apartment. When I asked the owner if she had given access to the basement to other tenants in the past, she replied "no." BTW, there is a door in the basement leading to the backyard, but she said she wouldn't give a key to a strange tenant, since the basement is finished and used as living space. With this in mind, as per the NEC I have to locate the second floor panel on the apartment, correct? Also, the service disconnect would either have to be located outside the house or in the respective apartment, correct?

Thanks in advance,
Andy