Common use of Prepaid Rent and Security Deposit Clause in Contracts

Prepaid Rent and Security Deposit. Prepaid rent and a security deposit in the amounts set forth in the Summary shall be delivered by Tenant to Landlord at the time the Lease is executed. The Landlord shall retain the security deposit as security for Tenant’s performance of all the covenants, conditions and agreements of this Lease. In no event shall the Landlord be obliged to apply the security deposit upon rents or other charges in arrears or upon damages for the Tenant’s failure to perform such covenants, conditions, and agreements; the Landlord may so apply the security deposit, at its option toward any obligation of Tenant to Landlord; and the Landlord’s right to the possession of the Premises for nonpayment of rents or for other reasons shall not in any event be affected by reason of the fact that the Landlord holds the security deposit. If all or part of the security deposit is applied toward the payment of rents in arrears or toward the payment of damages suffered by the Landlord by reason of the Tenant’s default under this Lease, then Tenant shall restore the security deposit to its full original balance within five days after written notice from Landlord, which notice shall state the items to which the security deposit has been applied. If not so applied, the security deposit is to be returned to Tenant without interest when this Lease is terminated, according to these terms, and in no event is the security deposit to be returned until Tenant has vacated the Premises and delivered possession to the Landlord in compliance with this Lease. In the event that the Landlord repossesses the Premises because of the Tenant’s default or because of the Tenant’s failure to carry out the covenants, conditions, and agreements of this Lease, Landlord may apply the security deposit toward damages as may be suffered or shall accrue by reason of the Tenant’s default or breach. In the event of bankruptcy or other debtor-creditor proceedings by or against Tenant, the security deposit shall be deemed to be applied first to the payment of rents and other charges due Landlord for the earliest possible periods prior to the filing of such proceedings which would not cause the payments to be recoverable by the bankruptcy trustee or debtor in possession as a preferential transfer. The Landlord shall not be obliged to keep the security deposit as a separate fund, but may mix it with its own funds. Landlord may deliver the security deposit to the purchaser or assignee of Landlord’s interest in the Premises and upon doing so Landlord shall be discharged from any further liability with respect to the security deposit. This provision shall also apply to any subsequent transfers of Landlord’s interest in the Premises.

Prepaid Rent and Security Deposit. Prepaid rent and a security deposit in On the amounts set forth in the Summary execution of this Lease Agreement by Lessee, Lessee shall be delivered by Tenant required to Landlord at pay Lessor the time sum of $141,949.44 (hereinafter referred to as "Prepaid Rent"), which sum shall be applied against the initial eighteen (18) month's Base Rental due hereunder. Lessee hereby agrees that said Prepaid Rent shall be paid as an inducement for Lessor to enter into this Lease Agreement with Lessee. The total amount of Prepaid Rent in addition to the Prepaid Additional Construction Allowance described in Exhibit "F" Section 2. of this Lease Agreement is equivalent to the majority of Lessor's up front lease cost Lessor has incurred in conjunction with this Lease Agreement. In the event Lessee should default in, or fail to timely perform any of its obligations contained in this Lease Agreement, or breach any of the terms, covenants, conditions or agreements herein contained prior to the expiration of the eighteenth (18th) month of the Lease is executedTerm, Lessee hereby agrees that the then unearned portion of said Prepaid Rent and Prepaid Additional Construction Allowance shall be retained by Lessor as a credit against any claims for damages Lessor may have against Lessee as described in Section 25. The Landlord of this Lease Agreement. In addition, Lessee shall retain deposit, on the security deposit date hereof, the sum of $7,886.08 (the "Security Deposit") as security for Tenant’s Lessee's faithful performance of Lessee's obligations herein contained. If Lessee defaults in any manner (including the payment of any rents or other sums due hereunder) in the performance of Lessee's obligations herein contained, Lessor may use, apply or retain all or any portion of the covenantsSecurity Deposit for the payment of any rent or other sum in default or for the payment of any other sum or expense to which Lessee may become obligated by reason of such default, conditions or to compensate Lessor for any loss or damage which Lessor may suffer thereby. Lessor and agreements Lessee agree that the Security Deposit shall not be an advance payment of rent or other sums due hereunder, or a measure of Lessor's damages in case of Lessee's default. If Lessor shall use or apply any or all of the Security Deposit as herein provided, Lessee shall, on demand, deposit with Lessor the amount of the Security Deposit so used or applied by Lessor so that Lessor shall have the full Security Deposit on hand during the entire term of this Lease. In no event Lessor shall not be required to separately account for the Landlord Security Deposit nor to maintain an escrow or separate account therefor. If Lessee performs all of Lessee's obligations hereunder, the Security Deposit, or so much thereof as has not theretofore been applied by Lessor, shall be obliged to apply the security deposit upon rents returned, without payment of interest or other charges in arrears or upon damages increment for its use, to Lessee (or, at Lessee's option, the Tenant’s failure to perform such covenantslast assignee, conditionsif any, of Lessee's interest hereunder) within sixty (60) days of the expiration of the term hereto, and agreements; after Lessee has vacated the Landlord may Leased Premises. Lessor's right to so apply the security deposit, at its option toward any obligation of Tenant to Landlord; and the Landlord’s right to the possession of the Premises for nonpayment of rents or for other reasons Security Deposit shall not in any event be affected by reason of the fact that the Landlord holds the security deposit. If all or part of the security deposit is applied toward the payment of rents in arrears or toward the payment of damages suffered by the Landlord by reason of the Tenant’s default under this Lease, then Tenant shall restore the security deposit to its full original balance within five days after written notice from Landlord, which notice shall state the items to which the security deposit has been applied. If not so applied, the security deposit is to be returned to Tenant without interest when this Lease is terminated, according to these terms, and in no event is the security deposit to be returned until Tenant has vacated the Premises and delivered possession to the Landlord in compliance with this Lease. In the event that the Landlord repossesses the Premises because manner limit, impair or otherwise affect any of the Tenant’s default or because of the Tenant’s failure to carry out the covenants, conditions, and agreements of this Lease, Landlord may apply the security deposit toward damages as may be suffered or shall accrue by reason of the Tenant’s default or breach. In the event of bankruptcy or other debtor-creditor proceedings by or against Tenant, the security deposit shall be deemed to be applied first to the payment of rents and other charges due Landlord for the earliest possible periods prior to the filing of such proceedings which would not cause the payments to be recoverable by the bankruptcy trustee or debtor in possession as a preferential transfer. The Landlord shall not be obliged to keep the security deposit as a separate fund, but may mix it with its own funds. Landlord may deliver the security deposit to the purchaser or assignee of Landlord’s interest in the Premises and upon doing so Landlord shall be discharged from any further liability with respect to the security deposit. This provision shall also apply to any subsequent transfers of Landlord’s interest in the PremisesLessor's remedies set forth herein.

Prepaid Rent and Security Deposit. Prepaid rent On the execution and a security deposit in the amounts set forth in the Summary delivery of this Lease by Tenant, Tenant shall be delivered by Tenant pay to Landlord at the time sum stated in Section 1.1(l), to be applied to the Lease is executedfirst accruing monthly installments of Rent. The On the date of this Lease, Tenant shall pay to Landlord shall retain the security deposit Security Deposit sum stated in Section 1.1(m) to be held by Landlord without interest as security for the performance by Tenant of Tenant’s performance of all the covenants, conditions 's covenants and agreements of this Lease. In no event shall the Landlord be obliged to apply the security deposit upon rents or other charges in arrears or upon damages for the Tenant’s failure to perform such covenants, conditions, and agreements; the Landlord may so apply the security deposit, at its option toward any obligation of Tenant to Landlord; and the Landlord’s right to the possession of the Premises for nonpayment of rents or for other reasons shall not in any event be affected by reason of the fact that the Landlord holds the security deposit. If all or part of the security deposit is applied toward the payment of rents in arrears or toward the payment of damages suffered by the Landlord by reason of the Tenant’s default obligations under this Lease, then Tenant shall restore the security deposit to its full original balance within five days after written notice from Landlord, which notice shall state the items to which the security deposit has been applied. If it being expressly understood that such Security Deposit is not so applied, the security deposit is to be returned to Tenant without interest when this Lease is terminated, according to these terms, and in no event is the security deposit to be returned until Tenant has vacated the Premises and delivered possession to the Landlord in compliance with this Lease. In the event that the Landlord repossesses the Premises because of the Tenant’s default or because of the Tenant’s failure to carry out the covenants, conditions, and agreements of this Lease, Landlord may apply the security deposit toward damages as may be suffered or shall accrue by reason of the Tenant’s default or breach. In the event of bankruptcy or other debtor-creditor proceedings by or against Tenant, the security deposit shall be deemed to be applied first to the an advance payment of rents and other charges due Landlord for the earliest possible periods prior to the filing Rent or a measure of such proceedings which would not cause the payments to be recoverable Landlord's damages in case of default by the bankruptcy trustee or debtor in possession as a preferential transfer. The Landlord shall not be obliged to keep the security deposit as a separate fund, but may mix it with its own fundsTenant. Landlord may deliver commingle any such Security Deposit with such other funds as Landlord in its sole discretion may determine. Upon the security deposit occurrence of any event of default by Tenant, Landlord may, from time to time, without prejudice to any other remedy provided herein or provided by law, use such fund to the purchaser extent necessary to make good any arrearages of Rent and any other damage, injury, expense or assignee liability caused to Landlord by such event of Landlord’s interest default. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Upon expiration of the Lease term, if Tenant is not then in default hereunder, and if it is not necessary to repair any damage or injury to the Demised Premises caused by Tenant or any subtenant, concessionaire or licenses of Tenant (excepting reasonable wear and upon doing so Landlord tear), any remaining balance of such Security Deposit shall be discharged from any further liability with respect returned by Landlord to the security deposit. This provision shall also apply to any subsequent transfers of Landlord’s interest in the PremisesTenant.

Prepaid Rent and Security Deposit. Prepaid rent A. The parties acknowledge that Landlord now holds the Security Deposit as security, to be applied pursuant to the provisions of the Lease Transaction Documents. Assignor releases all claims to that sum, and a security deposit in the amounts set forth in the Summary such sum shall be delivered held by Tenant Landlord for the benefit of Assignee, subject to Landlord at the time provisions of the Lease is executedTransaction Documents. The Landlord shall retain Assignor agrees to execute such documents as are reasonably requested by Assignee to implement the security deposit as security for Tenant’s performance of all the covenants, conditions and agreements provisions of this Section 10A. Notwithstanding anything contained herein, if Landlord exercises its right to terminate the Lease as a result of this Assignment pursuant to Section 19 of the Lease. In no event shall , then to the extent the Landlord be obliged is obligated to apply the security deposit upon rents or other charges in arrears or upon damages for the Tenant’s failure to perform such covenants, conditions, and agreements; the Landlord may so apply the security deposit, at its option toward return any obligation of Tenant to Landlord; and the Landlord’s right to the possession of the Premises for nonpayment of rents or for other reasons shall not in any event be affected by reason of the fact that the Landlord holds the security deposit. If all or part of the security deposit is applied toward Security Deposit to the payment Tenant under the Lease, Assignor shall be entitled thereto. B. The parties acknowledge that Landlord now holds the sum of rents in arrears or toward $363,387.50 as prepaid rent, for application against the payment of damages suffered by Basic Rent for the Landlord by reason first lease month of the Tenant’s default under this term, as provided in Section 4(d) entitled "First Month's Rent" of the Lease, then Tenant shall restore the security deposit . Assignor releases all claims to its full original balance within five days after written notice from Landlord, which notice shall state the items to which the security deposit has been applied. If not so applied, the security deposit is to be returned to Tenant without interest when this Lease is terminated, according to these termssuch prepaid rent, and in no event is the security deposit to be returned until Tenant has vacated the Premises and delivered possession to the Landlord in compliance with this Lease. In the event that the Landlord repossesses the Premises because of the Tenant’s default or because of the Tenant’s failure to carry out the covenants, conditions, and agreements of this Lease, Landlord may apply the security deposit toward damages as may be suffered or shall accrue by reason of the Tenant’s default or breach. In the event of bankruptcy or other debtor-creditor proceedings by or against Tenant, the security deposit such sum shall be deemed to be applied first to the payment of rents and other charges due held by Landlord for the earliest possible periods prior benefit of Assignee, subject to the filing provisions of the Lease Transaction Documents. The release of such proceedings which would not cause amount by Assignor for the payments benefit of Assignee is in consideration of the agreement of Assignee to be recoverable enter into this Assignment, particularly with regard to the agreement of Assignee to assume all issues related to the status of the development of plans for the Shell Improvements and the Tenant Improvements and the consequences of all existing Tenant Caused Delay resulting from the actions of Assignor. C. At such time as the Security Deposit is fully disbursed to pay for Tenant Improvement Costs or to satisfy obligations of the Tenant under the Lease or is returned to Assignee pursuant to the provisions of the Lease, Assignee shall pay to Assignor an amount equal to the product of (i) $25 per square foot, times (ii) the area that the Premises is reduced by the bankruptcy trustee or debtor in possession as a preferential transfer. The Landlord shall not be obliged to keep the security deposit as a separate fund, but may mix it with its own funds. Landlord may deliver the security deposit to the purchaser or assignee exercise of Landlord’s interest 's restaurant option pursuant to Section 58 of the Lease (expressed in the Premises and upon doing so Landlord shall be discharged from any further liability with respect to the security deposit. This provision shall also apply to any subsequent transfers of Landlord’s interest in the Premisessquare feet).