Interest on the Security Clause Samples
The 'Interest on the Security' clause defines how interest will accrue on any security deposit or similar financial guarantee provided under the agreement. Typically, this clause specifies whether the security amount will earn interest, the applicable interest rate, and how and when any accrued interest will be paid to the party that provided the security. For example, it may state that interest is calculated annually and paid out at the end of the lease or contract term. The core function of this clause is to clarify the financial treatment of the security deposit, ensuring both parties understand their rights and obligations regarding any interest earned, thereby preventing disputes over entitlement to interest.
Interest on the Security. Subject to the following, all interest accrued on the security belongs to the Producer. However, for the application of Article 19.11, the Guild may also use the interest on the amounts held in security to effect compensation, up to the amount certain, liquid and exigible. Furthermore, in the event of a grievance, the Guild may also use the interest on the amounts held in security, pursuant to Article 19.09, to effect compensation following the Arbitrator’s decision in the Guild’s favour, in whole or in part, up to the amount determined by the Arbitrator.
Interest on the Security