Security deposit

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Security deposit (initial)

Synonymous with the term margin. A cash amount that must be deposited with the broker for each contract as a guarantee of fulfillment of the futures contract. It is not considered as part payment or purchase. Related: Margin.

Security deposit (maintenance)

Security Deposit

1. See: Maintenance Margin.

2. An amount that a lessor, lender, seller or provider of a service requires up front to compensate for the risk that he will not receive payment or the agreement will be violated. For example, a landlord may require one month's rent as a security deposit just in case a tenant knocks a hole in the wall and leaves the landlord to pay for it. Generally speaking, if the agreement is followed, the one who pays the security deposit receives the money back. See also: Earnest Money.

security deposit

Money required to be paid to a landlord or to service providers in order to protect them against possible default.The law varies from state to state regarding the following questions: Must the deposit be kept in a separate account from the operating account? Must it earn interest? May it be used to pay for damage to the property,or just default in the payment of rent? How much money can a landlord require? How soon does it have to be refunded? Most states maintain excellent Web sites with information about consumer protection laws, including landlord-tenant law and the requirements related to security deposits.

References in periodicals archive ?
The hundreds of dollars an individual is asked to put forth upon signing a lease, from the 1st and last month's rent to a damage security deposit, is so overwhelming that it is often financially impossible for a consumer to move into the apartment of their choice.
For instance, IRS Revenue Ruling 72-519 states that an accrual-method taxpayer who has received a security deposit that is required under an agreement and is designed to protect the taxpayer's interest in property (not his or her income stream) may defer reporting the receipt of the deposit.
The need for expanded office space comes in response to SureDeposit's growing national acceptance by multifamily property owners and managers who are benefiting from SureDeposit's innovative security deposit alternative program.
As part of its court-ordered duties, Patchen explained, NHP is required to pay all claims, which she contends includes security deposits.
Hearthstone has set up the mechanism to replace all missing security deposits and we continue to aggressively repair a decade of MLG's property neglect.
As tenant security deposit accounts pay less than 3 percent these days and, in some states like New York, the landlord is entitled to retain 1 percent of the principal amount deposited as an administrative fee, the return on a cash security deposit is almost nil.
amp;uot;With the Deposit Saver option of a monthly fee in lieu of a security deposit, we are able to provide them with a wider selection of homes, as well as a more lenient monthly budget.
A commercial landlord holds security deposits subject to Article 7 of the New York General Obligations Law ("GOL").
TracFones require no retailer activation or programming, and they make cellular service available to everyone, with no credit needed, no contracts, no security deposits, no monthly bills and with no fine print," said Jaime Topp, executive vice president, Topp Telecom Inc.
Terry Shockley's firm TS Property Management, which does business as Property Management Concepts and Eugene Rentals, was taken over by a receiver earlier this month after state regulators found cash shortages in the firm's trust accounts for owners' rental payments and tenants' security deposits.

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