Common use of Tenant Security Deposits Clause in Contracts

Tenant Security Deposits. All security deposits of Tenants, whether held in cash or any other form, shall not be commingled with any other funds of Borrower and, if cash, shall be deposited by Borrower at such commercial or savings bank or banks as may be reasonably satisfactory to Lender. Any bond or other instrument which Borrower is permitted to hold in lieu of cash security deposits under any applicable Legal Requirements (a) shall be maintained in full force and effect in the full amount of such deposits unless replaced by cash deposits as herein above described, (b) shall be issued by an institution reasonably satisfactory to Lender, (c) shall, if permitted pursuant to any Legal Requirements, name Lender as beneficiary, payee or mortgagee thereunder (or at Lender’s option, be fully assignable to Lender at no cost to Lender) and, at Lender’s request, be turned over to Lender to be held by Lender subject to the terms of the Leases, and (d) shall in all respects comply with any applicable Legal Requirements and otherwise be reasonably satisfactory to Lender. Borrower shall, upon request, provide Lender with evidence reasonably satisfactory to Lender of Borrower’s compliance with the foregoing. Upon Lender’s demand, Borrower shall turn over to Lender the security deposits (and any interest theretofore earned thereon) with respect to all or any portion of the Property, to be held by Lender subject to the terms of the Leases. If Borrower is entitled to retain a security deposit in excess of the amounts then due (excluding future Rents in excess of one (1) month’s Rent) under the terms of the Lease, then such amount shall be transferred by Borrower into the TI/LC Reserve Account.

Tenant Security Deposits. All Cash Security Deposits held by or on behalf of Seller together with any interest accrued thereon, shall be retained by Seller, and Purchaser shall receive a credit at Closing in the amount thereof (less the amount of any interest or administrative charges which the landlord under such Lease and applicable law would be entitled to retain, pro-rated for the period prior to the Closing). In the case of any letters of credit or other non-cash security deposits of Tenantsdeposits, whether held such instruments shall be delivered, by Seller to Purchaser in cash or any other formaccordance with Section 9.1.4. After the date hereof and prior to Closing, Seller shall not be commingled permitted to apply any Security Deposit, except that Seller may apply such Security Deposit in accordance with any other funds of Borrower and, if cash, law and the applicable Lease in the event that (i) the Tenant under such Lease shall be deposited by Borrower at in default thereunder, (ii) such commercial or savings bank or banks as may be reasonably satisfactory Tenant shall have vacated and surrendered the leased premises thereunder to LenderSeller (iii) such Lease shall have been terminated, and (iv) Seller shall have given such Tenant written notice (with a copy to Purchaser) of the application of such Security Deposit. Any bond or other instrument which Borrower is permitted to hold in lieu of cash security deposits under any applicable Legal Requirements (a) Security Deposits applied after the Closing Date shall be maintained held or applied as determined by Purchaser in full force its discretion, provided, that if Purchaser applies any such Security Deposit against delinquent Fixed Rent or Additional Rent under a Lease, Purchaser shall apply such amounts to delinquent Fixed Rent and effect in the full amount of such deposits unless replaced by cash deposits as herein above described, (b) shall be issued by an institution reasonably satisfactory to Lender, (c) shall, if permitted Additional Rent pursuant to any Legal Requirements, name Lender as beneficiary, payee or mortgagee thereunder (or at Lender’s option, be fully assignable to Lender at no cost to Lender) and, at Lender’s request, be turned over to Lender to be held by Lender subject to the terms of the LeasesSections 3.2.4 and 3.2.5. At Closing, and (d) Purchaser shall deliver to Seller a receipt for any Security Deposits actually turned over or credited by Seller to Purchaser in all respects comply with any applicable Legal Requirements and otherwise be reasonably satisfactory to Lender. Borrower shall, upon request, provide Lender with evidence reasonably satisfactory to Lender of Borrower’s compliance accordance with the foregoingAssignment and Assumption of Leases (as hereinafter defined). Upon Lender’s demandIn the case of any Security Deposits held by Seller in the form of letters of credit, Borrower such letters of credit, to the extent permitted by the terms thereof, shall turn over be assigned to Lender Purchaser at the security deposits (Closing in accordance with the Assignment and Assumption of Leases. At Closing, with respect to such letters of credit which by their terms are assignable, Seller shall deliver any interest theretofore earned thereondocumentation required by Purchaser or the issuing bank(s) with respect to all the assignment of such letters of credit. Any fees imposed by such issuing banks in connection with such assignments shall be paid by Seller at the Closing. In the case of any such letters of credit which by their terms are not assignable, Seller shall use reasonable efforts to cause the applicable Tenant(s), on or any portion of promptly following the PropertyClosing Date, to be held replace such letters of credit with ones which are assignable to, or in the name of, Purchaser, provided, however, that as to any such letters of credit which are not replaced, then during the period from the Closing Date through the Escrow Release Date, Seller shall hold such nonassignable letters of credit for the benefit of Purchaser and, upon written request by Lender subject Purchaser, shall draw down on any such letter of credit and simultaneously therewith, shall deliver the proceeds of such draw down to the terms Purchaser. Purchaser shall use reasonable efforts to assist Seller in obtaining any such replacement letters of the Leases. If Borrower is entitled to retain a security deposit credit including, without limitation, in excess of the amounts then due (excluding future Rents in excess of one (1) monthPurchaser’s Rent) discretion, exercising Purchaser’s rights and remedies under the terms applicable Lease in order to cause the Tenant to obtain any replacement letter of the Lease, then such amount shall be transferred by Borrower into the TI/LC Reserve Accountcredit.

Tenant Security Deposits. All security Security deposits of Tenantstenants under Tenant Leases (other than those which are marketable securities, whether held in cash or any other form, shall not be commingled with any other funds letters of Borrower and, if cash, shall be deposited by Borrower at such commercial or savings bank or banks as may be reasonably satisfactory to Lender. Any bond credit or other instrument which Borrower is permitted to hold in lieu of non-cash security deposits under any applicable Legal Requirements (aitems) shall be maintained in full force and effect in transferred on the full relevant Closing Date by crediting to the relevant Buyers the aggregate amount of such deposits unless replaced by cash deposits as herein above described, (b) security deposits. No apportionment shall be issued by an institution reasonably satisfactory to Lender, (c) shall, if permitted pursuant to made of any Legal Requirements, name Lender as beneficiary, payee or mortgagee thereunder (or at Lender’s option, be fully assignable to Lender at no cost to Lender) and, at Lender’s request, be turned over to Lender to be held by Lender subject security deposits properly applied prior to the terms Adjustment Time and the relevant Sellers may retain such amounts, but in the case of security deposits applied during the period commencing on the date of this Agreement and ending at the Adjustment Time to cover past due rents, the relevant Sellers may retain such amounts only to the extent that such application was made with the consent of the Leasesrelevant Buyers. Security deposits applied after the Adjustment Time shall be applied in the order of priority set forth in Section 2.08(b)(i)(B). Security deposits held in the form of marketable securities shall be assigned and delivered to the relevant Buyers, and (d) shall in all respects comply with any applicable Legal Requirements and otherwise be reasonably satisfactory to Lender. Borrower shall, upon request, provide Lender with evidence reasonably satisfactory to Lender of Borrower’s compliance with the foregoingincome earned or accrued thereon (other than any portion thereof to which the tenants are entitled under their Tenant Leases) credited to the relevant Sellers. Upon Lender’s demandSecurity deposits held in the form of letters of credit, Borrower certificates of deposit and similar instruments shall turn over be assigned and delivered to Lender the security relevant Buyers on such Closing Date. Security deposits (held in other non-cash forms shall be delivered to the relevant Buyers at the Closing. After the relevant Closing, the relevant Buyers shall indemnify, hold harmless and defend the relevant Sellers and their Affiliates from and against any interest theretofore earned thereon) and all Damages with respect to all security deposits transferred to them, or any portion of with respect to which they have received a credit, pursuant to this Section 2.08(n). Promptly after such Closing, the Property, to be held by Lender subject relevant Buyers shall give such notice to the terms of the Leases. If Borrower is entitled tenants whose security deposits are transferred to retain them, or with respect to which they have received a credit, pursuant to this Section 2.08(n), that they hold such security deposit in excess of the amounts then due (excluding future Rents in excess of one (1) month’s Rent) under the terms of the Lease, then such amount shall be transferred by Borrower into the TI/LC Reserve Accountdeposits.

Tenant Security Deposits. All security deposits of Tenantstenants, whether held in cash or any other form, shall not be commingled with any other funds of Borrower and, if cash, shall be deposited by Borrower at such commercial or savings bank or banks as may be reasonably satisfactory to Lender. Any bond or other instrument which Borrower is permitted to hold in lieu of cash security deposits under any applicable Legal Requirements (ai) shall be maintained in full force and effect in the full amount of such deposits unless replaced by cash deposits as herein above described, (bii) shall be issued by an institution reasonably satisfactory to Lender, (ciii) shall, if permitted pursuant to any Legal Requirements, name Lender as beneficiary, payee or mortgagee thereunder (or at Lender’s option, be fully assignable to Lender at no cost to Lender) and, at Lender’s request, be turned over to Lender to be held by Lender subject to the terms of the Leases, and (div) shall in all respects comply with any applicable Legal Requirements and otherwise be reasonably satisfactory to Lender. Borrower shall, upon request, provide Lender with evidence reasonably satisfactory to Lender of Borrower’s compliance with the foregoing. Upon Lender’s demand, Borrower shall turn over to Lender the security deposits (and any interest theretofore earned thereon) with respect to all or any portion of the PropertyPremises, to be held by Lender subject to the terms of the Leases. If Borrower is entitled to retain a security deposit in excess of the amounts then due (excluding future Rents in excess of one (1) month’s Rent) under the terms of the Leasedeposit, then such amount shall be transferred by Borrower into the TI/LC Rollover Reserve Account.

Tenant Security Deposits. All The unapplied portion of any Tenant Security Deposits as of the date of the Rent Roll that have been paid to the owner of each Property or are held by agents of the owner of each Property on its behalf (or that were deposited with any predecessor in interest to the owner to the extent the predecessor has turned over security deposits to the owner or given the owner a credit therefor), are disclosed on SCHEDULE 4.4(c)-3 and all such Tenant Security Deposits are in the form of Tenantscash. To the extent any Tenant Security Deposits are held by Seller or an Assigning Affiliate, whether held in cash or any other form, Seller shall not be commingled with any other funds of Borrower and, if cash, shall be deposited by Borrower at such commercial or savings bank or banks as may be reasonably satisfactory to Lender. Any bond or other instrument which Borrower is permitted to hold in lieu of cash security deposits under any applicable Legal Requirements (a) shall be maintained pay to Purchaser, in full force and effect in cash, or credit against the full Purchase Price the aggregate amount of any such deposits unless replaced by cash deposits as herein above describedTenant Security Deposits, or (b) shall be issued by an institution reasonably satisfactory if applicable, assign to Lender, (c) shall, if permitted pursuant to any Legal Requirements, name Lender as beneficiary, payee or mortgagee thereunder Purchaser (or at Lender’s optionany Affiliate that Purchaser may designate) any letters of credit or other similar instruments comprising, be fully assignable such Tenant Security Deposits. Purchaser hereby indemnifies and agrees to Lender at no cost to Lender) and, at Lender’s request, be turned over to Lender to be held by Lender subject to the terms of the Leasesdefend Seller Indemnitees for, and (d) shall in agrees to defend and hold Seller Indemnitees harmless from and against, any and all respects comply with any applicable Legal Requirements and otherwise be reasonably satisfactory to Lender. Borrower shall, Claims imposed upon request, provide Lender with evidence reasonably satisfactory to Lender of Borrower’s compliance with the foregoing. Upon Lender’s demand, Borrower shall turn over to Lender the security deposits (and any interest theretofore earned thereon) or incurred by Seller Indemnitees with respect to the improper application of Tenant Security Deposits subsequent to Closing that were actually paid over, or assigned or credited to Purchaser pursuant to this Section. Seller hereby indemnifies and agrees to defend Purchaser Indemnitees for, and agrees to defend and hold Purchaser Indemnitees harmless from and against, any and all Claims imposed upon or any portion of the Property, to be held incurred by Lender subject Purchaser Indemnitees with respect to the terms improper application of the LeasesTenant Security Deposits prior to Closing. If Borrower is Seller will be entitled to retain a security deposit in excess of as its property any interest accrued on any Tenant Security Deposits prior to Closing except to the amounts then due (excluding future Rents in excess of one (1) month’s Rent) under extent such interest is required to be paid to any Tenants pursuant to their respective Leases or the terms of the Lease, then such amount shall be transferred by Borrower into the TI/LC Reserve Accountdepositing contractor.

Tenant Security Deposits. All At Closing, Seller shall, at Seller’s option, either deliver to Purchaser any refundable security deposits (collectively, the “Security Deposits”) actually held by such Seller pursuant to the applicable Leases or credit to the account of Tenants, whether held Purchaser the amount of such Security Deposits (to the extent such Security Deposits have not been applied against past due Rents or other amounts payable by the applicable tenant(s) as provided in cash or any other form, the Leases and in accordance with the terms hereof). Each Seller shall not be commingled with any other funds deliver to Purchaser at Closing the original Letters of Borrower and, if cash, Credit and shall be deposited by Borrower at use its commercially reasonable efforts to include therewith such commercial or savings bank or banks original transfer forms as may be required by the financial institution issuing any such Letter of Credit to transfer same to Purchaser (the “LOC Transfer Documents”) and such Seller shall be responsible for payment of any customary transfer fees that may be required by the banking or other institution issuing such Letter of Credit. If such transfer cannot be accomplished prior to or concurrently with Closing, notwithstanding Seller’s commercially reasonable efforts, Seller shall continue to reasonably cooperate with Purchaser following Closing to effectuate such transfer or re-issuance of any applicable Letter of Credit in the applicable Purchaser’s name. In addition and upon five (5) business days after a Seller’s receipt of written request from Purchaser, Seller shall (i) present any applicable Letters of Credit for payment prior to the date on which the transfer of such Letter of Credit has been completed in connection with a default by the applicable tenant under its Lease, and (ii) deliver such drawn amounts received by such Seller, in full, to Purchaser; provided that Purchaser indemnifies such Seller, in a form reasonably satisfactory to Lender. Any bond or other instrument which Borrower is permitted to hold in lieu of cash security deposits under any applicable Legal Requirements (a) shall be maintained in full force and effect in the full amount of such deposits unless replaced by cash deposits as herein above describedSeller, (b) shall be issued by an institution reasonably satisfactory to Lender, (c) shall, if permitted pursuant to any Legal Requirements, name Lender as beneficiary, payee or mortgagee thereunder (or at Lender’s option, be fully assignable to Lender at no cost to Lender) and, at Lender’s request, be turned over to Lender to be held by Lender subject to the terms of the Leases, and (d) shall in all respects comply with any applicable Legal Requirements and otherwise be reasonably satisfactory to Lender. Borrower shall, upon request, provide Lender with evidence reasonably satisfactory to Lender of Borrower’s compliance with the foregoing. Upon Lender’s demand, Borrower shall turn over to Lender the security deposits (and any interest theretofore earned thereon) with respect to all any actual loss or damage such Seller incurs, and agrees to defend any portion of the Propertyclaims against such Seller, to be held by Lender subject to the terms of the Leasesin connection with such draw down. If Borrower is entitled to retain a security deposit in excess of the amounts then due (excluding future Rents in excess of one (1This Section 4.4(f) month’s Rent) under the terms of the Lease, then such amount shall be transferred by Borrower into the TI/LC Reserve Accountsurvive Closing.

Tenant Security Deposits. All security deposits of Tenants, whether held in cash or any other form, shall not be commingled with any other funds of Borrower and, if cash, shall be deposited by Borrower at such commercial or savings bank or banks as may be reasonably satisfactory to Lender. Any bond or other instrument which Borrower is permitted to hold in lieu of cash security deposits under any applicable Legal Requirements (a) shall be maintained in full force and effect in the full amount of such deposits unless replaced by cash deposits as herein above described, (b) shall be issued by an institution reasonably satisfactory to Lender, (c) shall, if permitted pursuant to any Legal Requirements, name Lender as beneficiary, payee or mortgagee thereunder (or at Lender’s option, be fully assignable to Lender at no cost to Lender) and, at Lender’s request, be turned over to Lender to be held by Lender subject to the terms of the Leases, and (d) shall in all respects comply with any applicable Legal Requirements and otherwise be reasonably satisfactory to Lender. Borrower shall, upon request, provide Lender with evidence reasonably satisfactory to Lender of Borrower’s compliance with the foregoing. Upon Lender’s demand, Borrower shall turn over to Lender the security deposits (and any interest theretofore earned thereon) with respect to all or any portion of the applicable Individual Property, to be held by Lender subject to the terms of the Leases. If Borrower is entitled to retain a security deposit in excess of the amounts then due (excluding future Rents in excess of one (1) month’s Rent) under the terms of the Lease, then such amount shall be transferred by Borrower into the TI/LC Reserve Account.

Tenant Security Deposits. All After the expiration of the Inspection Period, Seller shall not apply any security deposits held (including drawing on any letter of Tenantscredit posted as a security deposit) under Existing Leases in respect of defaults by tenants under the applicable Leases without Buyer’s consent, whether held in cash or any other form, which consent shall not be commingled unreasonably withheld. At Closing, Buyer shall receive a credit for all cash security deposits, and accrued interest payable to tenants, then held by or for Seller under the Existing Leases, as shown on Exhibit “O” hereto. Seller shall be entitled to retain any administrative fee to which Seller may be entitled with respect to the Security Deposits for periods prior to the Closing. In the event any Security Deposits shall have been deposited with Seller in a form other funds than cash (e.g. letter of Borrower credit), Seller shall satisfy its obligations hereunder with respect to such Security Deposit by delivering to Buyer an assignment of such Security Deposit to Buyer with written instructions to the issuer of such r(s) to effect a transfer of any non-cash Security Deposits shall be paid by Seller. To the extent that any security deposit (to be so transferred) which is comprised of a letter of credit is not transferable as of the Closing, Seller and Buyer shall cooperate with each other following the Closing so as to transfer the same to Buyer or to obtain a replacement letter of credit with respect thereto in favor of Buyer and, if cashin either case, Buyer shall upon receipt thereof assume Seller’s obligations with respect to such security deposit pursuant to an assumption agreement reasonably acceptable to Seller and Buyer. Until any such letter of credit shall be deposited by Borrower at such commercial transferred or savings bank replaced, from and after the Closing Seller shall hold the same for the benefit of Buyer and shall draw upon the same and deliver the proceeds to Buyer or banks as may be reasonably satisfactory return the same to Lender. Any bond or other instrument which Borrower the applicable tenant, in each case upon Buyer’s written request, provided that Seller is legally permitted to do so and same does not require Seller to make an untrue statement or representation, and Buyer shall indemnify and hold in lieu harmless Seller from and against any and all loss, cost, damage, liability or expense (including, without limitation, reasonable attorney’s fees, court costs and disbursements) incurred by Seller as a result of cash any such actions taken by Seller at Buyer’s request. Buyer will cause all security deposits under any applicable Legal Requirements (a) shall to be maintained after Closing in full force and effect in the full amount of such deposits unless replaced by cash deposits as herein above described, (b) shall be issued by an institution reasonably satisfactory to Lender, (c) shall, if permitted pursuant to any Legal Requirements, name Lender as beneficiary, payee or mortgagee thereunder (or at Lender’s option, be fully assignable to Lender at no cost to Lender) and, at Lender’s request, be turned over to Lender to be held by Lender subject to the terms of the Leases, and (d) shall in all respects comply with any applicable Legal Requirements and otherwise be reasonably satisfactory to Lender. Borrower shall, upon request, provide Lender with evidence reasonably satisfactory to Lender of Borrower’s compliance accordance with the foregoing. Upon Lenderrequirements of applicable law and shall indemnify and defend Seller and the Seller’s demand, Borrower shall turn over Property Manager from all claims of tenants with respect to Lender the security deposits (and any interest theretofore earned thereon) with respect actually delivered to all Buyer or any portion of the Property, to be held by Lender subject for which Buyer received a credit at Closing to the terms of the Leases. If Borrower is entitled to retain a security deposit extent provided in excess of the amounts then due (excluding future Rents in excess of one (1) month’s Rent) under the terms of the Lease, then such amount shall be transferred by Borrower into the TI/LC Reserve AccountExhibit “F” attached hereto.

Tenant Security Deposits. All Cash Security Deposits held by or on behalf of Unit Seller together with any interest accrued thereon, shall be retained by Unit Seller, and Purchaser shall receive a credit at Closing in the amount thereof (less the amount of any interest or administrative charges which the landlord under such Lease and applicable law would be entitled to retain, pro-rated for the period prior to the Closing). In the case of any letters of credit or other non-cash security deposits of Tenantsdeposits, whether held such instruments shall be delivered, by Unit Seller to Purchaser in cash or any other formaccordance with Section 9.1.1(iv). After the date hereof and prior to Closing, Unit Seller shall not be commingled permitted to apply any Security Deposit, except that Unit Seller may apply such Security Deposit in accordance with any other funds of Borrower and, if cash, law and the applicable Lease in the event that (i) the Tenant under such Lease shall be deposited by Borrower at in default thereunder, (ii) such commercial or savings bank or banks as may be reasonably satisfactory Tenant shall have vacated and surrendered the leased premises thereunder to LenderUnit Seller (iii) such Lease shall have been terminated, and (iv) Unit Seller shall have given such Tenant written notice (with a copy to Purchaser) of the application of such Security Deposit. Any bond or other instrument which Borrower is permitted to hold in lieu of cash security deposits under any applicable Legal Requirements (a) Security Deposits applied after the Closing Date shall be maintained held or applied as determined by Purchaser in full force its discretion, provided, that if Purchaser applies any such Security Deposit against delinquent Fixed Rent or Additional Rent under a Lease, Purchaser shall apply such amounts to delinquent Fixed Rent and effect in the full amount of such deposits unless replaced by cash deposits as herein above described, (b) shall be issued by an institution reasonably satisfactory to Lender, (c) shall, if permitted Additional Rent pursuant to any Legal Requirements, name Lender as beneficiary, payee or mortgagee thereunder (or at Lender’s option, be fully assignable to Lender at no cost to Lender) and, at Lender’s request, be turned over to Lender to be held by Lender subject to the terms of the LeasesSections 3.2.4 and 3.2.5. At Closing, and (d) Purchaser shall deliver to Unit Seller a receipt for any Security Deposits actually turned over or credited by Unit Seller to Purchaser in all respects comply with any applicable Legal Requirements and otherwise be reasonably satisfactory to Lender. Borrower shall, upon request, provide Lender with evidence reasonably satisfactory to Lender of Borrower’s compliance accordance with the foregoingAssignment and Assumption of Leases (as hereinafter defined). Upon Lender’s demandIn the case of any Security Deposits held by Unit Seller in the form of letters of credit, Borrower such letters of credit, to the extent permitted by the terms thereof, shall turn over be assigned to Lender Purchaser at the security deposits (Closing in accordance with the Assignment and Assumption of Leases. At Closing, with respect to such letters of credit which by their terms are assignable, Unit Seller shall deliver any interest theretofore earned thereondocumentation required by Purchaser or the issuing bank(s) with respect to all the assignment of such letters of credit. Any fees imposed by such issuing banks in connection with such assignments shall be paid by Unit Seller at the Closing. In the case of any such letters of credit which by their terms are not assignable, Unit Seller shall use reasonable efforts to cause the applicable Tenant(s), on or any portion of promptly following the PropertyClosing Date, to be held replace such letters of credit with ones which are assignable to, or in the name of, Purchaser, provided, however, that as to any such letters of credit which are not replaced, then during the period from the Closing Date through the Escrow Release Date, Unit Seller shall hold such nonassignable letters of credit for the benefit of Purchaser and, upon written request by Lender subject Purchaser, shall draw down on any such letter of credit and simultaneously therewith, shall deliver the proceeds of such draw down to the terms Purchaser. Purchaser shall use reasonable efforts to assist Unit Seller in obtaining any such replacement letters of the Leases. If Borrower is entitled to retain a security deposit credit including, without limitation, in excess of the amounts then due (excluding future Rents in excess of one (1) monthPurchaser’s Rent) discretion, exercising Purchaser’s rights and remedies under the terms applicable Lease in order to cause the Tenant to obtain any replacement letter of the Lease, then such amount shall be transferred by Borrower into the TI/LC Reserve Accountcredit.