LOC Security Deposit Sample Clauses
The LOC Security Deposit clause requires a party, typically a tenant, to provide a security deposit in the form of a Letter of Credit (LOC) rather than cash. This means the tenant arranges for a bank to issue a letter guaranteeing payment up to a specified amount if the tenant defaults on its obligations, such as unpaid rent or property damage. By using an LOC, the landlord gains financial security without holding cash, while the tenant retains liquidity. The core function of this clause is to protect the landlord against losses while offering the tenant flexibility in how the deposit is provided.
LOC Security Deposit. Any amount of the LOC that is drawn on by Landlord but not applied by Landlord shall be held by Landlord as security deposit (the LOC Security Deposit") in accordance with Paragraph 5 of this Lease.
LOC Security Deposit. Any amount of the LOC that is drawn on by Sublandlord but not applied by Sublandlord shall be held by Sublandlord as a security deposit (the "LOC Security Deposit") in accordance with Paragraph 4 of this Sublease and returned to Subtenant within five
LOC Security Deposit. Any amount of the LOC that is drawn on by Sublessor but not applied by Sublessor shall be held by Sublessor as security deposit (the “LOC Security Deposit”) in accordance with Paragraph 6 of this Sublease.
LOC Security Deposit. Any amount of the LOC that is drawn on by Lessor but not applied by Lessor pursuant to Subparagraph 53.1.2.2, as well as additions thereto pursuant to Paragraph 53.1.4, shall be held by Lessor as a security deposit ("LOC SECURITY DEPOSIT"), which may be applied by Lessor for the purposes described in provisions (a), (b), or (c) of Subparagraph 53.