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 ?
It doesn't require a security deposit, and the interest rates offered are usually lower than on a secured credit card.
"As brokers we sometimes get contacted asking how to get a security deposit back from the landlord," he said.
Thinking the SMS asking him to give additional security deposit was a mistake, N.A.
Keep in mind that there are also other situations where the landlord can make deductions from a security deposit. For example, a landlord can keep money from a security deposit when:
"They can't live there and not pay the security deposit."
Improper accounting and misuse of security deposits have resulted in termination of one manager, and in another case a second was issued a letter of censure.
at the time of the execution of the lease, deposited with the landlord the sum of $2,357,040 as a security deposit. When Spinway Inc.'s business ran into financial trouble in late 2000, Sherwood was brought in as the Assignee for the Benefit of Creditors of Spinway, Inc.
A security deposit, generally a month to a month-and-a-half's rent, is usually required in advance.
Losing security deposit in any election is termed as a humiliating defeat.
The Bangko Sentral ng Pilipinas (BSP) has increased the basic security deposit that banks, trust corporations and administrators of the Personal Equity Retirement Account (PERA) are required to maintain with the central bank.
Summary: The security deposit should be repaid forthwith post expiry of the tenancy contract and settlement of maintenance dues.
If you are renting your unit, the condominium corporation has the right to ask you for a security deposit to cover any damage that may be caused by your tenant to the common property.

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