Application of Security Clause Samples
The 'Application of Security' clause defines how and when security interests, such as deposits or collateral, can be used by a party to cover obligations or losses under an agreement. Typically, this clause outlines the specific circumstances—such as a default or non-payment—under which the secured party may apply the security to outstanding debts or damages. Its core function is to provide a clear mechanism for the enforcement of security, ensuring that the secured party has a straightforward process to recover losses and manage risk if the other party fails to meet their obligations.
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Application of Security. If (a) an Event of Default by Tenant occurs under this Lease, or (b) Landlord receives a Non-Renewal Notice, or (c) Tenant files a voluntary petition under any Federal or state bankruptcy or insolvency code, law or proceeding, then Landlord shall have the right by sight draft to draw, at its election, all or a portion of the proceeds of the Letter of Credit and thereafter hold, use, apply, or retain the whole or any part of such proceeds, as the case may be, (x) to the extent required for the payment of any Rent or any other sum as to which Tenant is in default including (i) any sum which Landlord may expend or may be required to expend by reason of such Event of Default, and/or (ii) any damages to which Landlord is entitled pursuant to this Lease, whether such damages accrue before or after summary proceedings or other reentry by Landlord, and/or (y) as a cash security deposit, unless and until, in the case of clause (c) above, T▇▇▇▇▇ delivers to Landlord a substitute Letter of Credit which meets the requirements of this Article 25. If Landlord applies or retains any part of the proceeds of the Letter of Credit, or cash security, then Tenant, upon demand, shall amend the Letter of Credit or deliver an additional Letter of Credit which satisfies the requirements of this Article 25 in the amount so applied or retained such that Landlord shall have a Letter of Credit (or Letters of Credit) in the Letter of Credit Amount on hand at all times during the Term. If Tenant shall comply with all of the terms, covenants and conditions of this Lease, then the Letter of Credit or then remaining balance of the cash security, as the case may be, shall be returned to Tenant promptly after (x) the Expiration Date, (y) the surrender and yield-up of possession of the Premises to Landlord in the manner required by this Lease, and (z) the curing of any outstanding Events of Default under this Lease.
Application of Security. The Port may apply all or part of the Security to unpaid rent or any other unpaid sum due hereunder, or to cure other defaults of Tenant. If the Port uses any part of the Security, Tenant shall restore the Security to its then-currently required amount within fifteen (15) days after the receipt of the Port’s written request to do so. The retention or application of such Security by the Port pursuant to this Section does not constitute a limitation on or waiver of the Port’s right to seek further remedy under law or equity.
Application of Security. If Tenant defaults in the payment or performance of any of the terms, covenants or conditions of this Lease, including the payment of Rent, Landlord may apply or retain the whole or any part of the cash Security Deposit or may notify the Issuing Bank and thereupon receive all or a portion of the Security Deposit represented by the Letter of Credit and use, apply, or retain the whole or any part of such proceeds, as the case may be, to the extent required for the payment of any Fixed Rent or any other sum as to which Tenant is in default including (a) any sum which Landlord may expend or may be required to expend by reason of Tenant's default, and/or (b) any damages or Deficiency to which Landlord is entitled pursuant to this Lease or applicable Requirements, whether such damages or Deficiency accrues before or after summary proceedings or other reentry by Landlord. If Landlord applies or retains any part of the Security Deposit or draws on the Letter of Credit, Tenant, upon demand, shall deposit with Landlord the amount so applied or retained or increase the amount of the Letter of Credit so that Landlord shall have the full Security Deposit on hand at all times during the Term. If Tenant shall fully and faithfully comply with all of the terms, covenants and conditions of this Lease, the Security Deposit shall be returned to Tenant after the Expiration Date and after delivery of possession of the Premises to Landlord in the manner required by this Lease. Tenant expressly agrees that Tenant shall have no right to apply any portion of the Security Deposit against any of Tenant's obligations to pay Rent hereunder.
Application of Security. The Port may apply all or part of the Security to unpaid Rent or any other unpaid sum due hereunder, or to cure other defaults of Lessee. If the Port uses any part of the Security, Lessee shall restore the Security to its then-currently required amount within fifteen (15) days after the receipt of the Port’s written request to do so. The retention or application of such Security by the Port pursuant to this Section does not constitute a limitation on or waiver of the Port’s right to seek further remedy under law or equity.
Application of Security. The Lessor may apply all or part of the Security to unpaid rent or any other unpaid sum due under this Agreement to cure other defaults of Lessee. If the Lessor uses any part of the Security, Lessee shall restore the Security to its then-currently required amount within thirty (30) days after the receipt of the Lessor’s written request to do so. The retention or application of such Security by the Lessor pursuant to this Section does not constitute a limitation on or waiver of the Lessor’s right to seek further remedy under law or equity.
Application of Security. If Tenant defaults in its payment of Rent or performance of any of its other obligations under this Lease, and any renewals or extensions thereof, Landlord may, at its sole option, whether before or after enforcing its remedies against the Tenant in accordance with the terms of this Lease retain, use, or apply the whole or any part of the Security to the extent required for payment of any:
a) Base Rent;
b) Additional Rent;
c) Any other amounts Tenant is obligated to pay under the Lease;
d) Any amount that Landlord may expend or may be required to expend by reason of Tenant’s Default of this Lease;
e) Loss or damage that Landlord may suffer by reason of Tenant’s default, including, without limitation, any damages incurred by Landlord or deficiency resulting from the reletting of the Premises, whether such damages or deficiency accrues before or after summary proceedings or other reentry by Landlord; or
f) Costs incurred by Landlord in connection with the cleaning or repair of the Premises upon expiration or earlier termination of this Lease.
Application of Security. The Landlord may apply all or part of the Security to unpaid rent or any other unpaid sum due hereunder, or to cure other defaults of Tenant. If the Landlord uses any part of the Security, Tenant shall restore the Security to its then-currently required amount within fifteen (15) days after the receipt of the Landlord’s written request to do so. The retention or application of such Security by the Landlord pursuant to this subparagraph does not constitute a limitation on or waiver of the Landlord’s right to seek further remedy under law or equity.
Application of Security. (a) If the Land Owner does not rectify any Defect in the Relevant Works duly notified under clause 11.1 within the reasonable period specified in the notice or as otherwise agreed between the parties, then the Council may:
(i) rectify the Defect in the Relevant Works:
(ii) may make an appropriation from the Guarantee retained in accordance with clause 11.2 for the costs of and arising from the rectification; and
(iii) (to the extent that the costs exceed the Guarantee held) may recover the costs from the Land Owner as a debt due and owing.
(b) If the Council determines to rectify any Defects in the Relevant Works under this clause 11.3, the Land Owner grants the Council a licence for such period as is necessary for the Council to carry out, or procure the carrying out of, those rectification works.
Application of Security. If any part of the Secured ----------------------- Obligations cannot be lawfully secured by this Agreement, or if any part of the Collateral cannot lawfully be subject to the security interest hereof to the full extent of such indebtedness, then all payments made shall be applied on said indebtedness first in discharge of that portion thereof which is not secured by this Agreement.
Application of Security. 2.5.1 The Council may, from time to time, apply all or part of the Cash Deposit for payment of the Monitoring Sum which sum shall be deducted from the Cash Deposit before or on repayment of the balance of the Cash Deposit upon Completion of the Reinstatement Works in accordance with clause 3.2.i
2.5.2 If the Owner fails to comply with any of its obligations referred to in clause 2.1 within seven (7) days of receipt of a notice in writing from the Council, which refers to the failure and requests the failure to be rectified, or within such reasonable timeframe otherwise agreed by the Owner and the Council in writing, then the Council may, from time to time apply all or part of the Cash Deposit for the payment of any sum payable by the Owner to the Council under this Deed and/or the Act, including any sum incurred by the Council under clause 2.3 of this Deed, or retain all or part of those proceeds to cover amounts as reasonably estimated by the Council to be incurred or which may (in the reasonable estimation of the Council) be incurred by the Council or its contractors under clause 2.3 or in respect of those matters.