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 ?
Even if rental owners wanted to increase the amount of the security deposit, they couldn't in the first year of the tenant's occupancy, according to state law.
Dewa is not increasing security deposits for existing customers on their current premises but there is a new rate for security deposits for new move-ins, clarifies authority.
The tenant should be aware of all ramifications and penalties to be imposed, including possibly forfeiting the security deposit if the contract is broken before the specified time is up.
Available cash flows after HPT's owner's priority returns, funding for the security deposit and the agreed management fees are available to pay additional returns to HPT and for incentive fees to IHG.
In a statement to 7DAYS, DEWA said: "DEWA is not increasing security deposits for existing customers in their current premises, but there is a new rate for security deposits for new move-ins, to ensure that new tenants will not be affected by any outstanding bills from previous tenants.
For those coming from Nepal, a refundable security deposit amounting to Dh5,000 plus a non-refundable service charge of Dh300 are required.
com) the country's only nationwide group by, for, and about America's more than 100 million residential renters and a leading advocate for the “renting lifestyle,” has called on the providers of rental housing to broadly reform their policies concerning security deposits.
With such few options, Deposit Beast offers a simple, easy, and cost-effective solution to renters by helping them write a self-help security deposit demand letter.
Though the security deposit is not a handsome amount but in Pakistan politics, one whose security is confiscated is considered to have been defeated badly.
Part of the security deposit was invested in National Savings Certificates (NSC), Kisan Vikas Patras (KVP) and Post Office Time Deposits (POTD).
The decision of enforcing a security deposit will freeze big money liquidity, which is supposed to move and activate the local market, especially in the current situation, said BCCI chairman Dr Essam Fakhro.

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