Deposit Amount. Lessee shall deposit with the District a Security Deposit in the sum equivalent to three month’s Rent, initially Four Thousand Five Hundred and 00/100ths Dollars ($4,500.00). Such deposit shall be in the form of an irrevocable, automatically renewing, bank letter of credit, performance bond obtained from a company that has an A.M. Best’s rating of no less than A:VII or other security satisfactory to the District, in a form approved by the Chief. Upon notice from the Chief, this requirement may be removed until such time that a Security Deposit is required from Lessee. Documents evidencing this deposit must provide that the same shall remain in full force and effect for a period extending two months following any termination or cancellation of this Agreement as herein provided. At all times upon request of District, Lessee will increase the amount on deposit with District to an amount equivalent to at least three months of monthly rental payment due.
Appears in 2 contracts
Sources: Lease Agreement, Lease Agreement