Lessor Determined Security Clause Samples
The Lessor Determined Security clause gives the lessor the authority to set the type and amount of security deposit or other financial assurance required from the lessee. In practice, this means the lessor can decide whether a cash deposit, letter of credit, or other form of security is necessary, and can adjust the required amount based on factors such as the lessee’s creditworthiness or changes in risk. This clause ensures the lessor has flexibility to protect their interests and mitigate potential losses from default or damage by the lessee.
Lessor Determined Security. The amount of bond or Letters of Credit to be obtained by Lessee, or cash from Lessee, for each phase of ▇▇▇▇▇▇’s operations described in this Lease, including Sections 8.2 and 8.3 and any adjustment under Section 8.1.4, will be determined in writing by ▇▇▇▇▇▇ and will be based on the then-current cost as determined by ▇▇▇▇▇▇ and reviewed by Lessor, plus fifteen percent (15%), of a third-party contractor’s completion of the Decommissioning and Reclamation Plan as may be required for each phase and as provided by Lessee. In the alternative, and at ▇▇▇▇▇▇’s sole cost, the Parties may hire a mutually agreeable third party to estimate and recommend appropriate amount of security for each phase under this Lease.
Lessor Determined Security. The amount of Security to be supplied by Lessee will be determined in writing by ▇▇▇▇▇▇.
Lessor Determined Security. The amount of bond or Letters of Credit to be obtained by Lessee, or cash from Lessee, for each phase of ▇▇▇▇▇▇’s operations described in this Lease, including Sections 8.2, 8.3, and 8.4 and any adjustment under Section 8.1.4, will be determined in writing by Lessor and will be based on the then-current cost as determined by Lessee and reviewed by Lessor, plus fifteen percent (15%) (including, but not limited to, costs to transport and deposit all materials to a recycling or disposal facility, net of salvage value), of a third-party contractor’s completion of the Decommissioning and Reclamation Plan as may be required for each phase and as provided by Lessee, or as otherwise determined by Lessor. In the alternative, and at ▇▇▇▇▇▇’s sole cost, the Parties may hire a mutually agreeable third party to estimate and recommend appropriate amount of security for each phase under this Lease. In addition to the financial assurances and/or security referenced in Sections 8.2, 8.3, and 8.4 and any adjustment under Section 8.1.4,, a bond shall be in place sufficient to cover two years’ rent extending through the complete reclamation upon termination, should operations cease for any reason, including through the complete reclamation of the Leased Premises in accordance with the terms and conditions of the Lease.