Common use of Security Deposit; Increases Clause in Contracts

Security Deposit; Increases. Upon the execution of this Lease, Tenant shall deposit with Landlord a cash Security Deposit in the amount set forth in Section 1.10 above. Landlord may apply all or part of the Security Deposit to any unpaid rent or other charges due from Tenant or to cure any other defaults of Tenant. If Landlord uses any part of the Security Deposit, Tenant shall restore the Security Deposit to its full amount within ten (10) days after Landlord's written request. Tenant's failure to do so shall be a material default under this Lease. Landlord shall keep the Security Deposit in an interest bearing account and, until applied in accordance with the terms hereof, shall be deemed the property of Tenant subject to a security interest (hereby granted) in such funds in favor of Landlord. Interest on the Security Deposit shall be added to the Security Deposit. At Tenant's option, Tenant may furnish an irrevocable, unconditional letter of credit in such amount (the "Letter of Credit:"). The Letter of Credit must: (i) be in favor of Landlord or its assignee as beneficiary; (ii) provide for automatic renewals, without amendment, for consecutive periods of one year each, unless the issuing bank or financial institution sends written notice to Landlord by certified or registered mail, return receipt requested, not less than thirty (30) days next preceding the then expiration date of the Letter of Credit, that it elects not to have such Letter of Credit renewed; (iii) be issued by Chase Manhattan Bank, N.A., or another financial institution satisfactory to Landlord in Landlord's sole discretion; and (iv) provide that it can be drawn upon by Landlord's certification that Tenant is in default under this Lease beyond any applicable cure period. In the event Landlord draws under the Letter of Credit and applies the proceeds to cure a default by Tenant hereunder, the balance, if any, of such proceeds shall be retained by Landlord and held as a cash Security Deposit and invested at interest as above provided. Tenant shall restore the amount so applied by Landlord in cash or in the form of a new letter of credit.