Security Deposits; Lease Prepayments; Lease Obligations Sample Clauses

Security Deposits; Lease Prepayments; Lease Obligations. Buyer shall receive credits against the Purchase Price at Closing for any (i) Security Deposits, and (ii) prepaid rents actually paid to Seller by the Tenants under the Leases; provided, however, that Buyer shall not be entitled to receive a credit against the Purchase Price for prepaid rents or security deposits paid (or which were to have been paid pursuant to the terms of the Leases) unless Seller possesses such funds. During the period after the Execution Date and through the Closing Date, Seller shall provide Buyer with notice of all new Leases and Lease expansions, renewals, modifications and terminations (collectively, “Lease Documents”) desired to be entered into by Seller. Buyer shall have the right to approve any such new Leases and Lease Documents prior to execution by Seller. Buyer shall provide its approval (or disapproval and the reasons therefor) in writing to Seller within five (5) days after Seller notifies Buyer in writing of Seller’s desire to enter into any new Leases and Lease Documents. In the event Buyer does not notify Seller of its approval or disapproval during such five (5) day period, Buyer shall be deemed to have approved the new Lease or Lease Document. Buyer and Seller agree that if Seller executes any new Leases or Lease Documents with respect to the Property during the period after the Execution Date and prior to Closing, and the terms of such new Leases or Lease Documents (or related brokerage contracts) obligate Seller as landlord to pay leasing commissions, construct tenant improvements, pay tenant improvement allowances and/or pay other costs (“Lease Obligations”), Buyer shall pay to Seller at Closing the amount of all such Lease Obligations incurred by Seller and actually paid as of the Closing Date and shall be responsible as of Closing for the obligation to pay and assume all such Lease Obligations not yet paid or completed by Seller as of the Closing Date. In addition, Buyer shall be responsible as of Closing for all Lease Obligations of Seller as landlord under any Leases (and related brokerage contracts) executed prior to the Execution Date with respect to Lease Obligations not due as of the Closing Date; e.g. lease commissions for future extensions. The provisions of this Section shall survive Closing.
Sample 1
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Related to Security Deposits; Lease Prepayments; Lease Obligations

  • SECURITY DEPOSIT Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the Security Deposit, which shall be held by Landlord to secure Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit to perform any obligation Tenant fails to perform hereunder. 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. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax xxxx from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Deposit.

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