Example ContractsClausesReturn of Security Deposit or Letter of Credit
Return of Security Deposit or Letter of Credit
Return of Security Deposit or Letter of Credit contract clause examples

Broker(s): Irvine Management Company (“Landlord’s Broker”) is the agent of Landlord exclusively and Jones Lang LaSalle (“Tenant’s Broker”) is the agent of Tenant exclusively.

Return of Security Deposit or Letter of Credit. Should Tenant comply with all of such terms, covenants and conditions and promptly pay all sums payable by Tenant to Landlord hereunder, the Security Deposit and/or Letter of Credit or the remaining proceeds therefrom, as applicable, shall be returned to Tenant within ninety (90) days after the end of the Term, less any portion thereof which may have been utilized by Landlord to cure any default or applied to any actual damage suffered by Landlord.

Return of Security Deposit or Letter of Credit. Should Tenant comply with all of such terms, covenants and conditions and promptly pay all sums payable by Tenant to Landlord hereunder, the Security Deposit and/or Letter of Credit or the remaining proceeds therefrom, as applicable, shall (less any portion thereof which may have been utilized by Landlord to cure any default or applied to any actual damage suffered by Landlord) be returned to Tenant within forty-five (45) days after the latest to occur of: # the end of the Term, # the delivery by Tenant to Landlord of the Premises free and clear of all parties claiming under Tenant and in compliance with Section 21 of the Lease, and # the delivery to Landlord of an acceptable Surrender Report, as defined in Section 21 of the Lease, unless an Event of Default (or a default that with notice and the passage of time would constitute an Event of Default) exists at the end of the Term, in which event, the forty-five-(45)-day period shall commence on the date that Tenant cures such Event of Default or default.

Return of Security Deposit or Letter of Credit. Should Tenant comply with all of such terms, covenants and conditions and promptly pay all sums payable by Tenant to Landlord hereunder, the Security Deposit and/or Letter of Credit or the remaining proceeds therefrom, as applicable, shall (less any portion thereof which may have been utilized by Landlord to cure any default or applied to any actual damage suffered by Landlord) be returned to Tenant within ninety (90) days after the end of the Term.

Letter of Credit; Security Deposit. Landlord and Tenant acknowledge that, in accordance with Section 8 of the First Amendment and Section 8 of the Second Amendment, Tenant has previously delivered an L-C in the amount of $201,816.64 and a cash Security Deposit in the amount of $200,219.66 to Landlord. Pursuant to the Third Amendment, Tenant is obligated to increase the L-C or cash Security Deposit by an amount equal to $235,556.52 prior to the Third Expansion Commencement Date. Notwithstanding anything in the Lease to the contrary, concurrent with Tenant’s execution of this Fifth Amendment, Tenant shall provide an L-C (via delivery of a new L-C in such amount or an amendment to the existing L-C, which shall in either event be in a form reasonably acceptable to Landlord and in conformance with the terms of the Lease) in the total amount of $1,218,810.74 (the "New L-C"). To the extent that the total amount held by Landlord at any time after the Effective Date as security for the Lease, as hereby amended, is less than the amount required, Tenant shall provide the difference to Landlord pursuant to the terms of the Lease. Following receipt of the New L-C, Landlord shall return the cash Security Deposit currently held by Landlord.

Return of Security Deposit. Landlord and Tenant acknowledge that, in accordance with the Lease, Tenant has previously delivered the sum of $340,144.92 (the "Existing Security Deposit") to Landlord as security for the faithful performance by Tenant of the terms, covenants and conditions of the Lease. Within forty-five (45) days following the later to occur of # the full execution and delivery of this Second Amendment by Landlord and Tenant, and # Landlord's receipt of the "L-C" (as defined in Section 13.1 below) as required by the terms of Section 13 below, Landlord shall return to Tenant the full amount of the Existing Security Deposit.

Letter of Credit as Security Deposit. If Tenant has deposited a Letter of Credit with Landlord, it will be treated as a security deposit (the “Security Deposit”) pledged as security for the full, faithful and punctual performance by Tenant of all of the terms of this Lease. In the event Tenant defaults in the performance of any of the terms of this Lease beyond all applicable notice and cure periods, including, without limitation, the payment of Rent, or if Landlord is informed by the issuer of the Letter of Credit that the same will not be renewed and the Letter of Credit is not replaced by a substitute letter of credit at least twenty-one (21) days in advance of the Letter of Credit’s scheduled expiration date, Landlord may use, apply or retain the whole or any part of the Security Deposit to the extent required for the payment of any Rent or for any sum which Landlord may expend or may be required to expend by reason of Tenant’s default in respect of any of the terms of this Lease, including any damages or deficiency in the re-letting of the Premises, whether accruing before or after summary proceedings or other re-entry by Landlord. In the case of every such use, application or retention, Tenant shall, within ten (10) days after Landlord’s request therefor, cause the amount of the Letter of Credit to be increased by the sum so used, applied or retained so that the Letter of Credit shall be replenished to its amount existing immediately prior thereto. The Security Deposit shall not be deemed a limitation on Landlord’s damages or a payment of liquidated damages or a payment of the monthly Rent due for the last month of the Term of this Lease. If Tenant shall fully and punctually comply with all of the terms of this Lease, the Security Deposit, or so much of it as has not been applied by Landlord, shall be returned to Tenant after the termination of this Lease and after delivery of possession of the Premises to Landlord, within the time set forth above. In the event of a sale or lease of the building, Landlord shall have the right to transfer the Security Deposit to the vendee or lessee and upon such transfer and the vendee’s or lessee’s acknowledgement of receipt of the Security Deposit, Landlord shall immediately be released by Tenant from all liability for the return of such Security Deposit; and Tenant agrees to look solely to the new owner or landlord for the return of said Security Deposit; and it is agreed that the provisions hereof shall apply to every transfer or assignment made of the Security Deposit to a new owner or landlord. Tenant shall not assign or encumber or attempt to assign or encumber the Security Deposit and neither Landlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment or encumbrance. This Lease does not create a trust relationship between Landlord and Tenant with respect to such Security Deposit.

Decline of Security Deposit/Letter of Credit. Provided Tenant has satisfied the Financial Conditions (as defined in this Section 5.3) and no Event of Default exists under this Lease or would exist but for the pendency of any cure periods provided for in Section 20.1 herein (collectively, the “Reduction Conditions”), the Security Deposit, or Letter of Credit posted in lieu thereof, shall be reduced on the following dates (each a “Reduction Date”) as follows: # on May 1, 2023 (“First Reduction Date”), to ​ (“First Reduction Amount”); # on November 1, 2025 (“Second Reduction Date”), to ​ (“Second Reduction Amount”); and # on May 1, 2028 (“Third Reduction Date”), to ​. (“Third Reduction Amount”). Notwithstanding the foregoing, if the Reductions Conditions have not been satisfied on a specific Reduction Date, Tenant shall waive any right to a reduced Security Deposit or Letter of Credit, as applicable, on that specific Reduction Date (but not any future Reduction Date) and shall deposit any additional sums necessary to increase the Security Deposit, or provide a replacement Letter of Credit increased, to the full amount required for the period immediately prior to such specific Reduction Date. For purposes of example only, and without limitation to the foregoing, if the Reduction Conditions are not satisfied on the Second Reduction Date, then the amount required for the Security Deposit or Letter of Credit, as applicable shall remain the First Reduction Amount and, to the extent the amount of the Security Deposit or Letter of Credit, as applicable, then held by Landlord is less than the First Reduction Amount, Tenant shall be obligated to deposit any additional sums necessary to increase such amount to the full First Reduction Amount required on the First Reduction Date and the Security Deposit or Letter of Credit, as applicable, shall no longer be eligible for reduction to the Second Reduction Amount; provided, however, if the Reduction Conditions are satisfied on the Third Reduction Date, then Tenant shall again have the right to reduce the amount of the Security Deposit or Letter of Credit, as applicable, to the Third Reduction Amount in accordance with this Section 5.3. As used in this Section 5.3, the “Financial Conditions” mean that as of the applicable Reduction Date Tenant maintains the following computed in accordance with generally accepted accounting principles: # a three (3)-year compounded annual revenue growth rate of at least thirty percent (30%); # at least sixty (60%) gross profit margins; # a current ratio of 1.0 or higher of current total assets divided by current total liabilities; and # a current ratio of 3.4 or lower of total liabilities (excluding any funds held for customers) divided by net worth (including convertible preferred stock, but excluding any funds held for customers).

Letter of Credit; Security Deposit. Landlord and Tenant acknowledge that, in accordance with Section 8 of the First Amendment and Section 8 of the Second Amendment, Tenant has previously delivered an L-C in the amount of $201,816.64 and a cash Security Deposit in the amount of $200,219.66 to Landlord. Notwithstanding anything in the Lease to the contrary, on the Third Expansion Commencement Date, the Security Deposit held by Landlord pursuant to the Lease, as amended hereby, or, at Tenant’s election, the amount of the L-C shall be increased by $235,556.52 (via delivery of a new L-C in such amount or an amendment to the existing L-C, which shall in either event be in a form reasonably acceptable to Landlord and in conformance with the terms of this Lease). Accordingly, on or before the Third Expansion Commencement Date, Tenant shall deposit with Landlord an amount equal to $235,556.52 in connection with the Third Expansion Premises to be held by Landlord as a part of the Security Deposit, or, at Tenant’s election, provide an additional L-C (or an amendment to the existing L-C) that complies with the requirements in the Lease in the amount of $235,556.52 or an amendment to increase the current L-C by such amount. To the extent that the total amount held by Landlord at any time after the Third Expansion Commencement Date as security for the Lease, as hereby amended, is less than the amount required, Tenant shall provide the difference to Landlord pursuant to the terms of the Lease. If the Lease terminates as to the # Third Expansion Premises before it terminates as to the Existing Premises, the terms of this Section 8 shall be of no further force and Landlord shall promptly return any amounts held by Landlord in excess thereof pursuant to the terms of the Lease (as if the Lease had expired), and # Existing Premises before it terminates as to the Third Expansion Premises, the amount of the Security Deposit and L-C required under the Lease shall be limited to the increased amount required under this Section 8 and Landlord shall promptly return any amounts held by Landlord in excess thereof pursuant to the terms of the Lease (as if the Lease had expired).

Return of Security Deposit or Letter of Credit. Should Tenant comply with all of such terms, covenants and conditions and promptly pay all sums payable by Tenant to Landlord hereunder, the Security Deposit and/or Letter of Credit or the remaining proceeds therefrom, as applicable, shall (less any portion thereof which may have been utilized by Landlord to cure any default or applied to any actual damage suffered by Landlord) be returned to Tenant within sixty (60) days after the end of the Term.

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