Common use of Security Payment Clause in Contracts

Security Payment. 4.17.1 To ensure the Lessor’s interests, the Lessee shall make the Security Payment in the amount of one-month Permanent Part of Rent to the Lessor’s settlement account within five (5) banking days from the date of the Agreement signing (clause 4.2.1 of the Agreement). The amount of the Security Payment is at the disposal of the Lessor (and can be used by it) until the amount of the Security Payment shall be returned to the Lessee in the event of the lease term expiration or the Agreement termination; however, no interest for the disposal and use of the Security Payment amount in favour of the Lessee is accrued or paid. The Lessor and the Lessee agree that the Security Payment is a method expressly specified in the Civil Code of the Russian Federation to ensure that the Lessee fulfills its obligations under this Lease Agreement. The Security Payment is not a deposit or an advance payment.