Common use of Security Deposit Account Clause in Contracts

Security Deposit Account. All security deposits received by Manager shall be deposited on the date received into the Operating Account. No interest shall be paid to any tenant with respect to any security deposit unless required by the lease terms or by state or local law, and then only to the extent required by law. Any required payments of security deposits shall be made from the Disbursement Account referenced in Section 2.8(b) above. If a separate, segregated security deposit account (the "Security Deposit Account") is required, deposits will be made initially into the Operating Account, refunds will be made from the Disbursement Account, and the Security Deposit Account will be adjusted up or down once each month to the proper book balance. This adjustment will be via check drawn on the Security Deposit Account and deposited into the Operating Account or via check drawn on the Disbursement Account and deposited into the Security Deposit Account. All funds in the Security Deposit Account shall be deposited, maintained, paid out as provided herein and in compliance with all applicable law and in accordance with the terms of any lease agreement. Attached hereto and incorporated herein as Exhibit C is a complete schedule of all security deposits for tenants in place at the commencement of this Agreement.