Common use of The Bond Clause in Contracts

The Bond. 4.1 The Council guarantees payment to the Landlord of such sums payable in accordance with this Agreement (the Bond) 4.2 The maximum financial protection provided to the Landlord (the Maximum Amount Payable) is not to exceed One Thousand and Five Hundred Pounds (£1,500) at the date this agreement is signed. The Bond is provided against any uninsurable loss or damage for which the tenant of the Property is responsible and which occurs in rooms exclusively occupied by the Tenant. The Bond does not apply to communal areas in the Property. For the avoidance of doubt, whether or not the sum due in respect of damage exceeds the Maximum Amount Payable, the Council will only pay the Maximum Amount Payable. The Landlord must pursue the tenant directly for amounts recoverable in excess of the Maximum Amount Payable. 4.3 The Maximum Amount Payable will not be increased in accordance with any increases in rent, which may take place after the tenancy has been entered into.