Required Financial Assurances Sample Clauses
The "Required Financial Assurances" clause obligates one or more parties to provide proof of their financial ability to meet contractual obligations. This typically involves supplying documents such as letters of credit, performance bonds, or insurance certificates, and may specify the timing, form, and amount of such assurances. The core function of this clause is to protect the other party from financial risk by ensuring that adequate resources are available to fulfill the contract, thereby reducing the likelihood of default or non-performance.
Required Financial Assurances. 9.1. Security Deposit Tenant shall pay to Port upon execution of this Lease, in addition to the advance payment of the first month's Minimum Rent, the Security Deposit, in cash, in the sum specified in the Basic Lease Information, as security for the faithful performance by Tenant of all terms, covenants and conditions of this Lease. If Minimum Rent is increased beyond the amount set forth in the Basic Lease Information for the last year of the Term, then from and after such increase, Tenant shall increase the amount of the Security Deposit to maintain the same ratio of the Security Deposit to Minimum Rent as existed on the date immediately prior to such Minimum Rent increase. Any increase in the Security Deposit shall be delivered to Port on the same date that such increase in Minimum Rent is first due. Tenant agrees that Port may (but shall not be required to) apply the Security Deposit in whole or in part to (a) pay any sum due to Port under this Lease; (b) compensate Port for any expense incurred or damage caused by Tenant, its Agents or Invitees; (c) cure any default by Tenant; or (d) cure, or attempt to cure, any failure of Tenant to perform any other covenant, term or condition contained herein. Tenant shall immediately upon demand pay Port a sum equal to the portion of the Security Deposit expended or applied by Port. Port shall not 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. Nothing contained in this Section shall in any way diminish or be construed as waiving any of Port's other remedies set forth in this Lease or provided by law or equity. Tenant hereby waives the provisions of California Civil Code Section 1950.7 and/or any successor statute, it being expressly agreed that Port may apply all or any portion of the Security Deposit in payment of any and all sums reasonably necessary to compensate Port for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any Agent or Invitee of Tenant, and that following a default by Tenant, all or any portion of the Security Deposit may be retained by Port following a termination of this Lease and applied to future damages, including damages for future Rent, pending determination of the same.
Required Financial Assurances