Common use of SECURITY DEPOSITS AND ADVANCE RENT Clause in Contracts

SECURITY DEPOSITS AND ADVANCE RENT. If Tenant has paid a security deposit or advance rent the following provision apply: A. Landlord shall hold the money in a separate non-interest-bearing account in a banking institution insured by the FDIC for the benefit of Tenant. Landlord cannot mix such money with any other funds of Landlord or pledge, mortgage, or make any other use of such money until the money is actually due to Landlord. B. Upon the vacating of the premises for termination of the lease, if the Landlord does not intend to impose a claim on the {219312.0001/M1805246_3} security deposit, the Landlord shall have 15 days to return the security deposit together with interest if otherwise required, or the landlord shall have 30 days to give the tenant written notice by certified mail to the tenant's last known mailing address of his or her intention to impose a claim on the deposit and the reason for imposing the claim. If the Landlord fails to give the required notice within the 30-day period, he or she forfeits the right to impose a claim upon the security deposit. C. Unless the tenant objects to the imposition of the Landlord's claim or the amount thereof within 15 days after receipt of the Landlord's notice of intention to impose a claim, the landlord may then deduct the amount of his or her claim and shall remit the balance of the deposit to the tenant within 30 days after the date of the notice of intention to impose a claim for damages.