Common use of Return of the Security Deposit Clause in Contracts

Return of the Security Deposit. If Tenant fully and faithfully complies with all of the terms, provisions, covenants and conditions of this Lease, then promptly after the later of (i) the LC Date and (ii) delivery of vacant possession of the Premises to Landlord, the Letter of Credit shall either (a) be returned to Tenant by Landlord or (b) if Landlord shall have drawn upon such security to remedy defaults by Tenant in the payment or performance of any of Tenant’s obligations under this Lease, Landlord shall return to Tenant that portion, if any, of the security remaining in Landlord’s possession, which has not been applied to remedy, and will not be required to remedy, any Tenant default. In the event of a sale or leasing of the Project or the Building, Landlord shall transfer the Letter of Credit (or any cash security deposit then being held) to the vendee or lessee and Landlord shall thereupon be released by Tenant from all liability for the return of the Letter of Credit and Tenant shall cause the bank which issued the Letter of Credit to issue an amendment to the Letter of Credit or issue a new Letter of Credit naming the vendee or lessee as the beneficiary thereunder and, in such case, Tenant shall look solely to the new landlord for the return of the Letter of Credit. Tenant shall be responsible to pay as Additional Charges all transfer fees and any incidental costs and fees of the issuing bank with respect to any such transfer of the Letter of Credit. The provisions hereof shall apply to every transfer or assignment of the Letter of Credit made to a new landlord. Tenant shall not assign or encumber or attempt to assign or encumber the monies deposited herein as security and neither Landlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance (except to the assignee in connection with a permitted assignment of this Lease). Tenant shall renew any Letter of Credit from time to time, at least thirty (30) days prior to the expiration thereof, and deliver to Landlord a new Letter of Credit or an endorsement to the Letter of Credit, and any other evidence required by Landlord that the Letter of Credit has been renewed for a period of at least one (1) year. If Tenant fails to renew the Letter of Credit as aforesaid, then Landlord may present the Letter of Credit for payment and retain the proceeds thereof as security in lieu of the Letter of Credit. The costs, fees and expenses of Landlord (including reasonable attorneys’ fees and disbursements) incurred with respect to any transfer amendment or replacement Letter of Credit shall be reimbursed by Tenant within ten (10) days of demand therefor.