Common use of Application of Security Deposit Clause in Contracts

Application of Security Deposit. Tenant agrees that, if Tenant fails to pay any Rent, or otherwise defaults with respect to any provision of this Lease, Landlord may (but shall not be obligated to), and without prejudice to any other remedy available to Landlord, use, apply or retain all or any portion of the Security Deposit for the payment of any Rent in default or for the payment of any other sum to which Landlord may become obligated by reason of Tenant’s default, or to compensate Landlord for any loss or damage which Landlord may suffer thereby, including, without limitation, prospective damages and damages recoverable pursuant to California Civil Code Section 1951.2. If Landlord uses or applies all or any portion of the Security Deposit as provided above, Tenant shall, within three (3) days after demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to the full amount thereof, and Tenant’s failure to do so shall, at Landlord’s option, be an Event of Default under this Lease with no opportunity to cure. If Tenant performs all of Tenant’s obligations hereunder, the Security Deposit, or so much thereof as has not theretofore been applied by Landlord, shall be returned to Tenant (or, at Landlord’s option, to the last assignee, if any, of Tenant’s interest hereunder) within thirty (30) days following the later to occur of (a) the expiration of the Term of this Lease or (b) Tenant’s vacation and surrender of the Premises in accordance with the requirements of this Lease. Tenant waives the provisions of California Civil Code Section 1950.7, or any similar or successor laws now or hereinafter in effect, that restrict Landlord’s use or application of the Deposit, or that provide specific time periods for return of the Deposit. Landlord shall not be deemed to hold the Security Deposit in trust nor be required to keep the Security Deposit separate from its general funds, and Tenant shall not be entitled to any interest on the Security Deposit. The Security Deposit shall not be construed as an advance payment of Rent nor liquidated damages, and if Landlord’s claims hereunder exceed the Security Deposit, Tenant shall remain liable for the balance of such claims.

Application of Security Deposit. Prior to this Lease becoming effective, Tenant agrees that, if shall pay to Landlord a security deposit in the amount of $196,200.00 (the "Security Deposit"). The Security Deposit shall be held by Landlord as security for the performance by Tenant of all its obligations under this Lease. If Tenant fails to pay any Rent, Rent when due or otherwise defaults with respect fails to perform or fulfill any provision of obligation, covenant, condition or agreement under this Lease on a timely basis, in each case, beyond applicable notice and cure periods in this Lease, Landlord Landlord, without notice to Tenant, may (but shall not be obligated to), and without prejudice to any other remedy available to Landlord, ) use, apply or retain all or any portion of the Security Deposit for the payment of any Rent in default or for the payment of any other sum to which amounts expended or incurred by Landlord may become obligated by reason of Tenant’s defaultsuch failure, or to compensate Landlord for any loss or damage which Landlord may suffer incur thereby, including, without limitation, prospective damages and damages recoverable pursuant to California Civil Code Section 1951.2. Exercise by Landlord of its rights hereunder shall not constitute a waiver of, or relieve Tenant from any liability for, Tenant's failure to perform hereunder. If Landlord so uses or applies all or any portion of the Security Deposit as provided aboveDeposit, Tenant shall, within three ten (310) days after demand thereforby Landlord, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to the its full amount thereof, and Tenant’s failure to do so shall, at Landlord’s option, be an Event of Default under this Lease with no opportunity to cureamount. If Tenant performs all of Tenant’s 's obligations hereunder, the Security Deposit, or so much thereof as has not theretofore been applied by Landlord, shall be returned returned, with interest as provided in Section 26.2, to Tenant (or, at Landlord’s 's option, to the last assignee, if any, of Tenant’s 's interest hereunderunder this Lease) within thirty (30) days following after the later to occur of (ai) the expiration of the Term or earlier termination of this Lease or (bother than on account of an Event of Default) and (ii) Tenant’s 's vacation and surrender of the Premises in accordance with the requirements of condition specified by this Lease. Tenant waives the provisions of California Civil Code Section 1950.7, or any similar or successor laws now or hereinafter in effect, that restrict Landlord’s 's use or application of the Security Deposit, or that provide specific time periods for pertain to the return of the Security Deposit. Landlord shall not be deemed to hold Landlord's receipt and retention of the Security Deposit in shall not create any trust nor be required to or fiduciary relationship between Landlord and Tenant, and Landlord need not keep the Security Deposit separate from its general funds, and Tenant shall not be entitled to any interest on accounts. Landlord's return of the Security Deposit. The Security Deposit or any part thereof shall not be construed as an advance payment admission that Tenant has performed all of Rent nor liquidated damagesits obligations under this Lease. Upon termination of the original Landlord's (or any successor landlord's) interest in this Lease, and if Landlord’s claims hereunder exceed the original Landlord (or such successor landlord) shall be released from further liability with respect to the Security DepositDeposit upon the original Landlord's (or such successor landlord's) compliance with California Civil Code Section 1950.7, Tenant shall remain liable for the balance of such claimsor successor statute.

Application of Security Deposit. Tenant agrees that, if Tenant --------------------------------- fails to pay any Rent, or otherwise defaults with respect to any provision of this Lease, Landlord may (but shall not be obligated to), and without prejudice to any other remedy available to Landlord, use, apply or retain all or any portion of the Security Deposit for the payment of any Rent in default or for the payment of any other sum to which Landlord may become obligated by reason of Tenant’s 's default, or to compensate Landlord for any loss or damage which Landlord may suffer thereby, including, without limitation, prospective damages and damages recoverable pursuant to California Civil Code Section 1951.2. If Landlord uses or applies all or any portion of the Security Deposit as provided above, Tenant shall, within three (3) days after demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to the full amount thereof, and Tenant’s 's failure to do so shall, at Landlord’s 's option, be an Event of Default under this Lease with no opportunity to cure. If Tenant performs all of Tenant’s 's obligations hereunder, the Security Deposit, or so much thereof as has not theretofore been applied by Landlord, shall be returned to Tenant (or, at Landlord’s 's option, to the last assignee, if any, of Tenant’s 's interest hereunder) within thirty (30) days following the later to occur of (a) the expiration of the Term of this Lease or (b) Tenant’s 's vacation and surrender of the Premises in accordance with the requirements of this Lease. Tenant waives the provisions of California Civil Code Section 1950.7, or any similar or successor laws now or hereinafter in effect, that restrict Landlord’s 's use or application of the Deposit, or that provide specific time periods for return of the Deposit. Landlord shall not be deemed to hold the Security Deposit in trust nor be required to keep the Security Deposit separate from its general funds, and Tenant shall not be entitled to any interest on the Security Deposit. The Security Deposit shall not be construed as an advance payment of Rent nor liquidated damages, and if Landlord’s 's claims hereunder exceed the Security Deposit, Tenant shall remain liable for the balance of such claims.

Application of Security Deposit. Tenant agrees that, if Tenant fails to pay any Rent, or otherwise defaults with respect to any provision of this Lease, Landlord may (but shall not be obligated to), and without prejudice to any other remedy available to Landlord, use, apply or retain all or any portion of the Security Deposit for the payment of any Rent in default or for the payment of any other sum to which Landlord may become obligated by reason of Tenant’s default, or to compensate Landlord for any loss or damage which Landlord may suffer thereby, including, without limitation, prospective damages and damages recoverable pursuant to California Civil Code Section 1951.2. If Landlord uses or applies all or any portion of the Security Deposit as provided above, Tenant shall, within three (3) business days after demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to the full amount thereof, and Tenant’s failure to do so shall, at Landlord’s option, be an Event of Default under this Lease with no opportunity to cure. If Tenant performs all of Tenant’s obligations hereunder, the Security Deposit, or so much thereof as has not theretofore been applied by Landlord, shall be returned to Tenant (or, at Landlord’s option, to the last assignee, if any, of Tenant’s interest hereunder) within thirty (30) days following the later to occur of (a) the expiration of the Term of this Lease or (b) Tenant’s vacation and surrender of the Premises in accordance with the requirements of this Lease. Tenant waives the provisions of California Civil Code Section 1950.7, or any similar or successor laws now or hereinafter in effect, that restrict Landlord’s use or application of the Deposit, or that provide specific time periods for return of the Deposit. Landlord shall not be deemed to hold the Security Deposit in trust nor be required to keep the Security Deposit separate from its general funds, and Tenant shall not be entitled to any interest on the Security Deposit. The Security Deposit shall not be construed as an advance payment of Rent nor liquidated damages, and if Landlord’s claims hereunder exceed the Security Deposit, Tenant shall remain liable for the balance of such claims.

Application of Security Deposit. Tenant agrees that, if Tenant fails to pay any Rent, or otherwise defaults with respect to any provision of Any Security Deposit shall be held and applied by the Landlord as set forth in this Lease. Landlord shall hold any Security Deposit (or so much thereof as has not been applied by Landlord pursuant hereto) until that date which is sixty (60) days following the expiration or earlier termination of the Term as security for the payment and performance of all of Tenant’s obligations hereunder. Landlord shall have the right from time to time, Landlord may (but shall not be obligated to), and without prejudice to any other remedy available Landlord may have, to apply such Security Deposit, or any part thereof, to Landlord, use, apply or retain all or any portion of the Security Deposit for the payment of any Rent in default or for the payment of any other sum to which Landlord may become obligated by reason of Tenant’s defaultdamages arising from, or to compensate Landlord for cure, any loss or damage which Landlord may suffer thereby, including, without limitation, prospective damages and damages recoverable pursuant to California Civil Code Section 1951.2Default of Tenant. If Landlord uses shall so apply any or applies all or any portion of the such Security Deposit as provided aboveDeposit, Tenant shall, within three (3) days after shall immediately upon demand therefor, deposit cash with Landlord in an the amount sufficient so applied to restore the Security Deposit to the full original amount thereof, and Tenant’s failure to do so shall, at Landlord’s option, be an Event of Default under this Lease with no opportunity to cure. If Tenant performs all of Tenant’s obligations hereunder, Landlord shall return the Security Deposit, or so much thereof as has shall not have theretofore been applied by Landlordin accordance with the terms of this Section, shall be returned to Tenant on or before that date which is sixty (or, at Landlord’s option, to the last assignee, if any, of Tenant’s interest hereunder) within thirty (3060) days following the later to occur of (a) the expiration or earlier termination of the Term of this Lease or (b) Tenant’s vacation and surrender of possession of the Premises by Tenant to Landlord at such time, provided that there is then existing no Default of Tenant (nor any circumstance which, with the passage of time or the giving of notice, or both, would constitute a Default of Tenant). Landlord shall have no obligation to pay interest on the Security Deposit and may commingle the same with Landlord’s other funds. If Landlord assigns Landlord’s interest under this Lease, the Security Deposit, or any part thereof not previously applied, may be turned over by Landlord to Landlord’s assignee, and, if so turned over, Tenant agrees to look solely to such assignee for proper application of the Security Deposit in accordance with the requirements terms of this LeaseARTICLE 18. The Holder of a Mortgage shall not be responsible to Tenant waives for the provisions of California Civil Code Section 1950.7, or any similar or successor laws now or hereinafter in effect, that restrict Landlord’s use return or application of the any Security Deposit, whether or that provide specific time periods for return not it succeeds to the position of the Deposit. Landlord shall not be deemed to hold the Security Deposit in trust nor be required to keep the Security Deposit separate from its general fundshereunder, and Tenant shall not be entitled to any interest on the Security Deposit. The unless such Security Deposit shall not be construed as an advance payment of Rent nor liquidated damages, and if Landlord’s claims hereunder exceed the Security Deposit, Tenant shall remain liable for the balance of have been received in hand by such claimsHolder.

Application of Security Deposit. Tenant agrees thatshall deposit with Landlord within one (1) day after Landlord returns to Tenant a fully-executed original counterpart of this Lease, if an irrevocable standby letter of credit (the “Letter of Credit”) in the amount of Three Hundred Sixty Thousand and 00/100 Dollars ($360,000.00) complying with the terms of Paragraph 7.B as the “Security Deposit” upon the execution of this Lease by Tenant. The Security Deposit shall be held by Landlord as security for the performance by Tenant of all its obligations under this Lease. If Tenant fails to pay any RentRent due hereunder, or otherwise defaults commits a default with respect to any provision of this Lease, Landlord may (but shall not be obligated to), and without prejudice to any other remedy available to Landlord, use, apply or retain all or any portion of the Security Deposit for the payment of any such Rent in default or for the payment of any other sum to which amounts expended or incurred by Landlord may become obligated by reason of Tenant’s default, or to compensate Landlord for any loss or damage which Landlord may suffer thereby, including, without limitation, prospective damages incur thereby (and damages recoverable pursuant to in this regard Tenant hereby waives the provisions of California Civil Code Section 1951.21950.7 and any similar or successor statute providing 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.). Exercise by Landlord of its rights hereunder shall not constitute a waiver of, or relieve Tenant from any liability for, any default. If Landlord uses or applies all or any portion of the Letter of Credit posted as the Security Deposit as provided aboveis drawn upon by Landlord for such purposes, Tenant shall, shall within three ten (310) days after written demand therefor, therefor deposit cash a replacement Letter of Credit with Landlord in an the amount sufficient to restore of the Security Deposit to the full amount thereof, and Tenant’s failure to do so shall, at Landlord’s option, be an Event original Letter of Default under this Lease with no opportunity to cureCredit. If Tenant performs all of Tenant’s obligations hereunder, the Security Deposit, or so much thereof as has not theretofore been applied by Landlord, Letter of Credit shall be returned to Tenant (or, at Landlord’s option, to the last assignee, if any, of Tenant’s interest hereunderunder this Lease) within thirty (30) days following after the later to occur of (ai) the date of expiration of the Term or earlier termination of this Lease Lease, or (bii) Tenant’s vacation and surrender of the Premises by Tenant if the Premises has been left in accordance with the requirements of condition specified by this Lease. Tenant waives Upon termination of the provisions original Landlord’s (or any successor owner’s) interest in the Premises, the original Landlord (or such successor) shall be released from further liability with respect to the Security Deposit upon the original Landlord’s (or such successor’s) delivery of the Letter of Credit to the successor landlord and compliance with California Civil Code Section 1950.71950.7(d), or any similar or successor laws now or hereinafter in effect, that restrict Landlord’s use or application of the Deposit, or that provide specific time periods for return of the Deposit. Landlord shall not be deemed to hold the Security Deposit in trust nor be required to keep the Security Deposit separate from its general funds, and Tenant shall not be entitled to any interest on the Security Deposit. The Security Deposit shall not be construed as an advance payment of Rent nor liquidated damages, and if Landlord’s claims hereunder exceed the Security Deposit, Tenant shall remain liable for the balance of such claimsstatute.

Application of Security Deposit. Tenant agrees thatshall deposit with Landlord upon the execution of this Lease by Landlord and Tenant, if an irrevocable standby letter of credit (the “Letter of Credit”) in the amount of Three Hundred Two Thousand and 00/100 Dollars ($302,000.00) complying with the terms of Paragraph 7.B as the “Security Deposit” for the full and faithful performance of every provision of this Lease to be performed by Tenant. If Tenant fails to pay any Rent, or otherwise defaults with respect to any provision of this Lease, after the expiration of any applicable cure or grace periods expressly provided for in this Lease, Landlord may (but shall not be obligated to), and without prejudice to any other remedy available to Landlord, use, apply or retain all or any portion part of the this Security Deposit for the payment of any Rent rent or other sum in default default, or for the payment of any other sum to amount which Landlord may spend or become obligated to spend by reason of Tenant’s default, or to compensate Landlord for any other loss or damage which Landlord may suffer thereby, including, without limitation, prospective damages and damages recoverable pursuant to by reason of Tenant’s default. Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code Section 1951.2Code, and all other provisions of law, now or hereafter in force, which provide that Landlord may claim from a security deposit (including the Letter of Credit) 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. Exercise by Landlord of its rights hereunder shall not constitute a waiver of, or relieve Tenant from any liability for, any default. If Landlord uses or applies all or any portion of the Letter of Credit which is posted as the Security Deposit as provided aboveis drawn upon by Landlord for such purposes, Tenant shall, shall within three ten (310) days after written demand therefor, : (i) deposit cash a replacement Letter of Credit with Landlord in an substitution of the original Letter of Credit in the amount sufficient of the original Letter of Credit (in which case the original Letter of Credit shall be returned to restore Tenant) or (ii) amend the original Letter of Credit to increase the amount back to Three Hundred Two Thousand and 00/100 Dollars ($302,000.00) following such-draw. If Tenant is not otherwise in default, the Security Deposit to the full amount thereof, and Tenant’s failure to do so shall, at Landlord’s option, be an Event of Default under this Lease with no opportunity to cure. If Tenant performs all of Tenant’s obligations hereunder, the Security Deposit, or so much any balance thereof as has not theretofore been applied by Landlord, shall be returned to Tenant (or, at Landlord’s option, to the last assignee, if any, of Tenant’s interest hereunder) within thirty (30) days following the later to occur of (a) the expiration termination of the Term of this Lease or (b) Tenant’s vacation and surrender of the Premises in accordance with the requirements of this Lease. Tenant waives the provisions of California Civil Code Section 1950.7, or any similar or successor laws now or hereinafter in effect, that restrict Landlord’s use or application of the Deposit, or that provide specific time periods for return of the Deposit. Landlord shall not be deemed to hold the Security Deposit in trust nor be required to keep the this Security Deposit separate from its general funds, fund and Tenant shall not be entitled to any interest on the such Security Deposit. The Landlord’s receipt and retention of the Security Deposit shall not be construed as an advance payment create any trust or fiduciary relationship between Landlord and Tenant. Upon termination of Rent nor liquidated damages, and if the original Landlord’s claims hereunder exceed (or any successor owner’s) interest in the Premises, the original Landlord (or such successor) shall be released from further liability with respect to the Security Deposit upon the original Landlord’s (or such successor’s) compliance with California Civil Code Section 1950.7(d), or successor statute and successor’s written assumption of Landlord’s obligations with respect to the Security Deposit, Tenant shall remain liable for the balance of such claims.