Security money Clause Samples
The 'Security money' clause establishes a requirement for one party, typically the tenant or contractor, to provide a sum of money as a form of financial guarantee to the other party. This money is usually held in trust or escrow and may be used to cover damages, unpaid dues, or breaches of contract terms. By requiring security money, the clause protects the interests of the party receiving the funds, ensuring there are resources available to address potential losses or defaults, thereby reducing financial risk and encouraging compliance with the agreement.
Security money. The Lessee agrees to pay a sum of RMB5 million as security money for the performance of its obligations under the Finance Lease Agreement. If the Lessee fails to fully perform any obligation under the Finance Lease Agreement, Chengtong Financial Leasing has the right to apply the security money to set off against any amount owed by the Lessee to it in the following order: overdue interest, other payables, damages (if any), rent payable and repurchase price. If the Lessee has fully performed all its obligations under the Finance Lease Agreement, Chengtong Financial Leasing shall, within 10 working days, return the security money to the Lessee or use the security money to set off against the lease payment for the last corresponding period. The security money shall not bear any interest. The Guarantor, which is a collectively-owned enterprise established in the PRC and principally engaged in grain and oil purchase and sale and reserve, self-owned property leasing, sale of affordable housing and construction of urban infrastructure, has provided a guarantee in favour of Chengtong Financial Leasing for all amounts payable by the Lessee under the Finance Lease Agreement, including but not limited to the lease payment and other payables. The guarantee is irrevocable and continuing in nature. To the best of the Directors’ knowledge, information and belief having made all reasonable enquiries, the Guarantor and its ultimate beneficial owners are Independent Third Parties.
Security money. The Lessee agrees to pay a sum of RMB5.4 million (equivalent to approximately HK$6.32 million) as security money for the performance of its obligations under the Finance Lease Agreement. If the Lessee fails to fully perform any obligation under the Finance Lease Agreement, Chengtong Financial Leasing has the right to apply the security money to set off against any amount owed by the Lessee to it in the following order: overdue interest, other payables, damages (if any), lease payment and repurchase price. If the Lessee has fully performed all its obligations under the Finance Lease Agreement, Chengtong Financial Leasing shall, within 10 working days, return the security money to the Lessee or use the security money to set off against the lease payment for the last corresponding period. The security money shall not bear any interest. The Guarantor, which is a State-owned enterprise established in the PRC with limited liability and principally engaged in investments in policy-based and operation- based projects, entrusted lending, investment in contracting of urban infrastructure construction and land consolidation, has provided a guarantee in favour of Chengtong Financial Leasing for all amounts payable by the Lessee under the Finance Lease Agreement, including but not limited to the lease payment, damages and other payables. The guarantee is irrevocable and continuing in nature. To the best of the Directors’ knowledge, information and belief having made all reasonable enquiries, the Guarantor and its ultimate beneficial owners are Independent Third Parties.
Security money i. Within fifteen (15) days of receipt of the Notification of contract award, the successful bidder shall furnish to the STATE IMPLEMENTING AGENCY, DEPARTMENT OF ANIMAL HUSBANDRY & VETERINARY the Security Deposit at the rate of 2% of the value of supply order.
ii. The Security Deposit shall be in one of the following forms: (a) Bank Guarantee, issued by a reputable bank or a Demand Draft payable to The STATE IMPLEMENTING AGENCY, DEPARTMENT OF AH & VETERINARY, Meghalaya, Shillong.
iii. The proceeds of the Security Deposit shall be payable to the STATE IMPLEMENTING AGENCY, DEPARTMENT OF ANIMAL HUSBANDRY & VETERINARY, MEGHALAYA as compensation for any loss resulting from the Supplier’s failure to complete the obligations under the contract.
iv. Failure of the successful Bidder (L1) to sign the contract and/or furnish the Security Deposit shall constitute sufficient grounds for the annulment of the award and forfeiture of the ▇▇▇▇▇▇▇ Money, in which event the STATE IMPLEMENTING AGENCY, DEPARTMENT OF ANIMAL HUSBANDRY & VETERINARY may make the award to the next lowest evaluated Bidder (L2) or call for new bids.
v. The Security Deposit will be released by the STATE IMPLEMENTING AGENCY, DEPARTMENT OF ANIMAL HUSBANDRY & VETERINARY and returned to the Supplier not later than 90 days following the date of completion of the Supplier’s performance obligations under the contract.
Security money. The Lessee agrees to pay RMB5 million (equivalent to HK$6 million) and RMB10 million (equivalent to approximately HK$12 million) as security money for the performance of its obligations under the Finance Lease Agreement I and Finance Lease Agreement II respectively. If the Lessee fails to fully perform any obligation under any of the Finance Lease Agreements, Chengtong Financial Leasing has the right to apply the respective security money to set off against any amount owed by the Lessee to it in the following order: liquidated damages, other payables including but not limited to damages (if any), outstanding and prospective lease payments and repurchase price. If the Lessee has fully performed all its obligations under the respective Finance Lease Agreements, Chengtong Financial Leasing shall return the respective security money to the Lessee upon the expiry of the Lease Term and the Lessee’s presentation of the receipt(s) of the security money. When the respective amount payable by the Lessee under the Finance Lease Agreement I and the Finance Lease Agreement II is less than the respective balance of the security money, the Finance Lease Agreement I and/or Finance Lease Agreement II (as the case may be) may be early terminated upon the Lessee’s application. The Lessee shall then present the receipt(s) of the security money to Chengtong Financial Leasing upon which the security money shall be used to set off the lease payments and other payables under the Finance Lease Agreement I and/or Finance Lease Agreement II (as the case may be) and any remaining balance of the security money shall be returned to the Lessee.
Security money. The Tenant shall on the signing hereof deposit and maintain with the Landlord a sum set out in Part 5 of the First Schedule hereto to secure the due observance and performance by the Tenant of the covenants agreements stipulations and conditions herein contained and on the Tenant’s part to be observed and performed. The said deposit shall be retained by the Landlord throughout the remainder of the said term free of any interest to the Tenant with power for the Landlord without prejudice to any other right or remedy hereunder to deduct therefrom the amount of any costs expenses loss or damage sustained by the Landlord as the result of any non-observance or non-performance by the Tenant of any such covenant agreement stipulation or condition. Subject as aforesaid the said deposit shall be repaid to the Tenant by the Landlord within 30 days after the expiration or sooner determination of this Agreement and the delivery of vacant possession of the Premises or the settlement by the Tenant of the last outstanding claim of the Landlord against the Tenant in respect of any breach non-observance or non-performance of any of the covenants agreements stipulations or conditions herein contained and on the part of the Tenant to be observed and performed whichever is the later.
Security money. The Lessee has agreed to pay a total of RMB7.5 million (equivalent to HK$8.1 million) as security money for the performance of its obligations under the Sale and Leaseback Agreements. The amount of the security money was determined after evaluating the background and creditability etc. of the Lessee. If the Lessee fails to fully perform any obligation under the Sale and Leaseback Arrangement, Chengtong Financial Leasing has the right to apply the security money to set off against any amount owed to it in the following order: liquidated damages, other payables including but not limited to damages (if any), outstanding and prospective lease payments and repurchase price. If the Lessee has fully performed all its obligations under the Sale and Leaseback Arrangement, Chengtong Financial Leasing shall return the security money to it upon its presentation of the receipt(s) of the security money.
Security money. (a) (i) Floors 10-13. The Tenant, as per the instructions of the Landlords and/or the Building Management Company, shall deposit with the Developer a sum of Tk. 1,22,02,920.00 (One Crore twenty-two lacs two thousand nine hundred twenty) only, which sum is the equivalent of 06 (six) months’ rent for Floors 10 through 13 of the Demised Premises as of the Effective Date. The foregoing amount shall be paid to Developer at the time of execution of this Agreement.
(ii) Floors 5-9. In addition, Tenant, as per the instructions of the Landlords and/or the Building Management Company, shall deposit with the Developer a sum of Tk. 1,53,03,600.00 (One Crore fifty-three lacs three thousand and six-hundred) only, which sum is the equivalent of 06 (six) months’ Rent for all of Floors 5 through 9 of the Demised Premises as of the Effective Date. Tenant shall deposit 25,50,600.00 (Twenty five lacs fifty thousand and six-hundred) of this amount at the time of execution of this Agreement and 25,50,600.00 (Twenty five lac fifty thousand and six-hundred) only upon delivery of each subsequent floor. The amounts set forth above in Sections 3(a)(i) and (ii) are security for Tenant’s faithful performance of Tenant’s obligations under this Agreement and shall be collectively referred to herein as the “Security Money”.
(b) Tenant may, at its option, apply the Security Deposit to the payment of Rent for the last 6 (six) months of its tenancy (whether due to expiration of this Agreement or termination pursuant to Section 4(a) below). To the extent any amounts are not applied to the last 6 (six) months of Rent, the Landlords shall have the responsibility and obligation to return the Security Money to the Tenant after the Expiration Date or in event of earlier termination of the Agreement, at the time of such earlier termination. Such Security Money shall be returned to Tenant within 30 (thirty) days after deduction for unpaid Rent, Service Charges or other unpaid bills that are the responsibility of the Tenant (e.g., electricity and water) (if any) under this Agreement. In the event the Landlords fails to pay the any Security Money owed to Tenant within 30 (thirty) days from the date of termination of Agreement, a penalty at the rate of the Bangladesh Bank per annum shall be charged over the outstanding Security Money owed to Tenant.
Security money. The security @10% of the total billed amount shall be retained which will be returned to the firm after 12 months from the successful completion of the work.