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 ?
I look forward to receiving my security deposit, which you can send to my new address at 9876 Owner Way, Edmonton, Alberta, T1A 2B3.
The Philippine, Bangladesh, and Indonesian missions do not require security deposits, only processing or documentary fees ranging between Dh40 and Dh74.
Some landlords also offer "bum-down" or burn-off" of security deposits whereby tenants are reimbursed a portion of the deposit as a credit history is developed, lawyers said.
SureDeposit is a risk management tool that vastly improves upon traditional security deposits by replacing them with a financial guarantee surety bond.
One owner that conducted an internal analysis of activity-based costing discovered that it cost $10 to simply cut the check and prepare the envelope to return a security deposit.
SureDeposit President Paul Kaliades explains, "Our growth reflects the increased demand for a better way for property owners and managers to mitigate their risk and attract tenants in a competitive marketplace than what traditional security deposits offer.
Formerly the Tenant Security Deposit Bond Program, SureDeposit is underwritten by Bankers Insurance Group.
Converge Services Group recently acquired one of the leading security deposit alternatives, SureDeposit, and is relaunching the company nationally by expanding its marketing program, management team, and sales force.

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