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["miscellaneous", "Miscellaneous"], ["the-loan-facility", "The Loan Facility"], ["deposits", "Deposits"], ["the-facility", "The Facility"]], "children": [["payment-of-deposits", "Payment of Deposits"], ["applicable-terms", "Applicable Terms"]], "id": "initial-deposits", "related": [["initial-deposit", "Initial Deposit", "Initial Deposit"], ["additional-deposits", "Additional Deposits", "Additional Deposits"], ["escrow-deposits", "Escrow Deposits", "Escrow Deposits"], ["additional-deposit", "Additional Deposit", "Additional Deposit"], ["establishment-of-escrow-account-deposits-in-escrow-account", "Establishment of Escrow Account; Deposits in Escrow Account", "Establishment of Escrow Account; Deposits in Escrow Account"]], "related_snippets": [], "updated": "2026-05-10T05:39:37+00:00", "also_ask": ["What are the most effective negotiation levers for adjusting initial deposit amounts?", "Which essential terms must be included to protect both parties\u2019 interests in the deposit clause?", "What are the primary legal risks if the initial deposit terms are ambiguous or silent?", "How do initial deposit requirements in this agreement compare to industry standards or statutory norms?", "What factors most commonly lead courts to find initial deposit clauses unenforceable?"], "drafting_tip": "Specify deposit amount and payment timeline to ensure clarity; define refund conditions to prevent disputes; identify recipient account to avoid misdirection.", "explanation": "The Initial Deposits clause sets out the requirement for one or both parties to provide a specified sum of money at the outset of an agreement, typically as a sign of commitment or to secure performance. This deposit is usually paid upon signing the contract or within a defined timeframe, and may be held in escrow or by one of the parties until certain conditions are met, such as the completion of due diligence or closing of a transaction. The core function of this clause is to ensure that parties have a financial stake in the agreement from the beginning, thereby reducing the risk of non-performance or withdrawal."}, "json": true, "cursor": ""}}