DEPOSIT APPLICATION Sample Clauses
The Deposit Application clause defines how and when a deposit paid by one party is applied toward obligations under the agreement. Typically, this clause specifies that the deposit will be credited against amounts due, such as rent, purchase price, or damages, and outlines the conditions under which the deposit may be retained or returned. Its core practical function is to provide clarity on the handling of deposits, ensuring both parties understand how the funds will be used and under what circumstances they may be forfeited or refunded.
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DEPOSIT APPLICATION. The Landlord may, acting reasonably, use, retain or apply all or part of the Rental Deposit to the extent required for the payment of any Rent which the Tenant has not paid on the date due or as compensation on account for any loss or damage arising from the breach or default by the Tenant of any provision of this Lease. If the Landlord uses, retains or applies all or part of the Rental Deposit for any purpose other than the payments set forth in Subparagraph 1.3(k)(ii), then the Tenant will, forthwith upon notice from the Landlord, pay to the Landlord the amount required to restore the Rental Deposit to its original amount.