A security deposit clause outlines the amount of money a tenant must pay to the landlord before moving in, which serves as protection against potential damages beyond normal wear and tear or unpaid rent. This deposit is typically refundable at the end of the lease term, provided the tenant meets all the conditions of the contract.
Daily Use and Addition of Security Deposit a. Party A and Party B agree to calculate the use conditions of the security deposit of Party B during the period (“Use Period”) from 0:00 of the previous business day to 0:00 of the date of calculation in every business day. Amount of security deposit used = total amount of delinquent loans repaid out of the security deposit during Use Period. b. Party B shall add and pay the security deposit used during the Use Period to Party A within two business days after the date of calculation.
Monthly Calculation and Addition of Security Deposit a. Party A and Party B agree that in each calendar month, the additional security deposit payable by Party B shall be calculated. The calculation formula shall be as follows: amount of additional security deposit payable for the current month = total amount of security deposit payable at the end of the current month - total amount of security deposit payable in the beginning of the current month, where: total amount of security deposit payable at the end of the current month = ending balance of outstanding loans (i.e. the balance of outstanding loans as at 24:00 of the final day of the current month of the calculation period) ×K; total amount of security deposit payable in the beginning of the current month = ending balance of outstanding loans of the preceding calculation period (i.e. the balance of outstanding loans as at 24:00 of the final day of the preceding calculation period) ×K; b. Party B shall, within【5】business days following the end of the current month, settle and pay the additional security deposit payable for the current month to Party A according to the provisions above.
Cash Security Deposit. Tenant has delivered to Landlord a Security Deposit in the form of a Letter of Credit in the amount of $39,292.70. Tenant desires to replace the Letter of Credit with a Security Deposit in the form of cash, and Landlord is amenable to such replacement. Accordingly, Landlord shall return the Letter of Credit to Tenant within 15 business days after Landlord’s receipt of $39,292.70 by (a) good check payable to Landlord or (b) by wire transfer via Fedwire or ACH transfer to an account designated in writing by Landlord.
Security Deposit. The Security Deposit shall be held by Landlord without obligation for interest thereon as security for the performance of Tenant’s obligations under this Lease. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default. Upon each occurrence of a Default (as defined in Section 20), Landlord may use all or part of the Security Deposit to pay delinquent payments due under this Lease, and the cost of any damage, injury, expense or liability caused by such Default, without prejudice to any other remedy provided herein or provided by law. Upon any such use of all or any portion of the Security Deposit, Tenant shall pay Landlord on demand the amount that will restore the Security Deposit to its original amount. Upon bankruptcy or other debtor-creditor proceedings involving Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee; no interest shall accrue thereon. The Security Deposit shall be the property of Landlord, but shall be paid to Tenant when Tenant’s obligations under this Lease have been completely fulfilled. If Landlord transfers its interest in the Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this Section 6, or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to such transferee or the return of the Security Deposit to Tenant, Landlord shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee.
Tenant hereby waives the provisions of any law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. The Security Deposit, or any balance thereof (i.e., after deducting therefrom all amounts to which Landlord is entitled under the provisions of this Lease), shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within 90 days after the expiration or earlier termination of this Lease.
Security Deposit. Tenant shall deposit with Landlord and maintain during the Term the cash sum of Seventy-Five Thousand and 00/100 Dollars ($75,000.00) as a security deposit (the "Security Deposit") which Landlord shall hold as security for the full and faithful performance by Tenant of every term, provision, obligation and covenant under this Lease and subject to the terms and conditions of this Lease. The Security Deposit shall be paid to Landlord in six (6) equal installments as follows: (i) $12,500.00 on November 21, 2014 and (ii) $12,500.00 on the first day of each month thereafter commencing on December 1, 2014 until paid in full. The Security Deposit may be deposited by Landlord into an interest-bearing account, which interest shall accrue for the sole benefit of Landlord and not Tenant. The Security Deposit shall not be considered an advance payment of Rent (or of any other sum payable by Tenant under this Lease) or a measure of Landlord's damages in case of a default by Tenant. The Security Deposit shall not be considered a trust fund, and Tenant expressly acknowledges and agrees that Landlord is not acting as a trustee or in any fiduciary capacity in controlling or using the Security Deposit. Landlord shall have no obligation to maintain the Security Deposit separate and apart from Landlord's general and/or other funds.
Security deposit and payment 1. Considering that Party B needs to mobilize its own investment and financing resources, pay personnel cost and bear equity investment project raising risk after signing strategic cooperation agreement with Party A, Party B collects security deposit RMB 2,000,000 from Party A. Unless Party B can cover Party B’s corresponding loss with security deposit after reaching consensus through negotiation with Party A when Party A’s serious violation of contract and refusal to accept Party B’s funds causing loss to Party B, security deposit cannot be deducted for any reason. 2. After Party B completes due diligence to Party A, both parties shall sign this strategic cooperation agreement. Within three days after this strategic cooperation agreement is signed, Party A shall pay security deposit RMB 1,000,000 to Party B. The project will be initiated on the date when Party B receives the security deposit paid by Party A or the third party designed by Party A.
If Tenant is not in default at the termination of this Lease, the balance of the Security Deposit remaining after any such application shall be returned by Landlord to Tenant. If Landlord transfers its interest in the Premises during the term of this Lease, Landlord may assign the Security Deposit to the transferee and thereafter shall have no further liability for the return of such Security Deposit.
Security Deposit. Pursuant to the Lease Licensor, as Landlord under the Lease, is holding a cash security deposit from Licensee, as Tenant under the Lease, of $84,069.00 (the “Security Deposit”). The parties hereby agree that the Security Deposit, in addition to being held as security for the full and faithful performance by Tenant under the Lease as set forth therein, shall also be held as security for the full and faithful performance by Licensee of all of the terms, covenants, and conditions of this Agreement to be kept and performed by Licensee during the License Period. If Licensee defaults Licensor may, but shall not be required to use, apply or retain all or any portion of the Security Deposit to compensate Licensor for any loss or damage Licensor may suffer by reason of Licensee’s default. If any portion of the Security Deposit is so used or applied, Licensee shall within five (5) days after demand restore the Security Deposit to its original amount and failure to do so shall be a default hereunder and under the Lease. If Licensee shall fully and faithfully perform every provision of this Agreement to be performed by it and if, pursuant to the terms of the Lease, the Security Deposit is to be returned to the Tenant, then the Security Deposit or any balance thereof shall be returned to Tenant within thirty (30) days following the expiration of the term of the Lease.
SECURITY DEPOSIT. Security Deposit: On or before execution of this lease, Tenant will pay a security deposit to Landlord in the amount of _____________ plus _____________ for refundable pet deposit for the total of _____________. “Security deposit” has the meaning assigned to that term in §92.102, Property Code. Any additional deposits Tenant pays to Landlord, other than the security deposit, will become part of the security deposit. Tenant will pay the Security Deposit on or before January 29, 2024.
Interest: No interest or income will be paid to Tenant on the security deposit. Landlord may place the security deposit in an interest-bearing or income-producing account and any interest or income earned will be paid to Landlord or Landlord’s representative.
Refund: Tenant must give Landlord at least thirty (30) days written notice of surrender before Landlord is obligated to account for or refund the security deposit. Any refund of the security deposit will be made payable to all Tenants named in this lease.
Contemporaneously with Subtenant’s executed submission of this Sublease, Subtenant shall deposit $327,132.90 (the “Security Deposit”) with Sublandlord to secure Subtenant’s performance of its obligations hereunder. Such Security Deposit shall be promptly returned in the event Prime Landlord’s consent to this Sublease Agreement is not received in accordance with Section 2(b) hereof.
If Sublandlord so uses part or all of the Security Deposit in accordance with this Section, Subtenant shall, within ten (10) days after written demand, pay Sublandlord the amount necessary to restore the Security Deposit to its original amount. Sublandlord shall not be required to pay any interest on said Security Deposit, and Sublandlord may commingle the Security Deposit with other funds. If Sublandlord assigns its interest in the Prime Lease, the Security Deposit shall be transferred to the transferee and Sublandlord shall be relieved of any further liability in relation to the Security Deposit. Upon the expiration or earlier termination of this Sublease Agreement Sublandlord shall return the Security Deposit, or so much thereof as shall not have been applied in accordance with the terms of this Section, to Subtenant within thirty (30) days of the expiration or earlier termination of the Term of this Sublease, provided, however, Sublandlord may use the Security Deposit to cure any defaults of Subtenant or to reimburse Sublandlord for expenses of repairing, restoring or cleaning the Subleased Premises. In the event all or any portion of the Security Deposit remains after paying for such items, the remaining amount shall be promptly returned to Subtenant.
Security Deposit: The following shall be added to the end of Section 3(d) of the License Agreement: In consideration of the extended term, Licensee shall pay a Security Deposit equal to $561,600.00 (“Extended Term Security Deposit”). As Licensee has already paid Licensor a Security Deposit of $524,695.91 under the License Agreement (“Previous Security Deposit”), Licensor shall retain the Previous Security Deposit and Licensee shall pay to Licensor the balance owed of $ $36,904.09.
SECURITY DEPOSIT Upon execution of this Agreement, the Sublessee shall pay to the Sublessor a security deposit in the amount of $6,000.00 (the “Security Deposit”). The Security Deposit shall be kept in a separate interest bearing escrow account. Should the Sublessee fail to make the monthly rental payment or other charges which may due hereunder, or otherwise is deemed in default of the terms of this Agreement, the Sublessor may use, apply or retain all or any portion of the Security Deposit to correct the default. In the event that the Sublessor finds it necessary to make use of the Security Deposit to compensate for the missed payment or to correct a balance due default, the Sublessee shall have ten (10) business days, after written demand from the Sublessor, to restore the Security Deposit amount in full. Failure to restore any deficient amount in the Security Deposit within the time frame allocated shall be deemed a material breach of this Agreement. Upon completion or expiration of this Agreement, and if the Sublessee has performed and satisfied all conditions and obligations hereunder, the Security Deposit, including any accrued interest, shall be returned or refunded to the Sublessee in full within 30 days after Sublessee has vacated the Premises.
A security deposit is a sum of money held in trust either as an initial part-payment in a purchasing process (often used in real estate transactions) or, more frequently, as a deposit of funds to compensate the property owner for potential losses or damages caused by the tenant. It serves as a financial safety net for landlords, ensuring that tenants adhere to the terms of their lease agreements. Security deposits are usually refundable, provided all conditions in the contract are met and no damage is incurred beyond normal wear and tear.
You should use a security deposit in situations where a property or asset is rented out, and there is a need to protect against potential damages or losses. Property owners or landlords often require a security deposit when leasing:
The security deposit is typically requested at the beginning of a rental term or upon signing a lease agreement. Collecting a deposit can help mitigate risks and create a financial buffer for unexpected expenses resulting from a tenant’s negligence or non-compliance with the agreement terms.
When writing about a security deposit, it is essential to clearly outline the terms and conditions associated with it. Below is a structured outline to consider:
Amount Required: Specify the exact amount required for the security deposit.
Usage: Describe circumstances under which the deposit will be used (e.g., repairs, unpaid rent).
Return Conditions: Clearly state the conditions that must be met for the deposit to be returned in full, including time frames for inspection and return.
Deductions: Outline potential reasons for deductions from the deposit.
Interest: If applicable, mention whether the deposit accrues interest and how it will be calculated or returned.
Legal Compliance: Ensure all terms comply with local laws and regulations concerning security deposits.
Example:
The tenant agrees to pay a security deposit of $1,500. This deposit will be held in trust and may be used by the landlord to cover any damages to the property or unpaid rent at the end of the lease term. The deposit will be returned within 30 days of the tenant vacating the property, provided no damages or outstanding payments are due beyond normal wear and tear.
Security deposits are commonly found in various types of contracts, primarily where there is an element of renting or leasing. Some typical contracts that include a security deposit clause are:
Residential Lease Agreements: Contracts for renting houses, apartments, or rooms.
Commercial Lease Agreements: Contracts for leasing office spaces or other commercial real estate.
Event Venue Rental Agreements: Contracts for renting spaces for events or gatherings.
Equipment Rental Agreements: Contracts for renting machinery, electronics, or other equipment.
These contracts typically include a detailed section outlining the terms, conditions, and handling of the security deposit to protect both parties involved.
Try our AI contract analysis and extract important clauses and information from existing contracts.
< <
Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
Service credits are compensation mechanisms outlined in a contract where the service provider offers credit to the customer for any failure to meet agreed-upon performance standards or service levels. These credits serve as a financial remedy, incentivizing the provider to maintain high-quality service while acknowledging and compensating for any deficiencies.
A service provider indemnity clause is a contractual agreement where the service provider agrees to compensate the client for any losses, damages, or liabilities resulting from the provider's actions or negligence. This provision is designed to protect the client from legal or financial repercussions tied to the service provider's performance.
A services warranty clause guarantees that the services provided will meet certain quality and performance standards, typically for a specified period. It often outlines the provider's obligation to rectify any defects or deficiencies discovered during the warranty period, ensuring customer satisfaction and accountability.
Fill out the form and we will get in touch with you to give you a personal, customized demo of fynk.
Greetings!
I'm Markus, co-founder of fynk. After you've submitted the form, I'll swiftly get in touch with you.
Also, right after you submit your details, you can pick a time that works best for you for our meeting.
