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Security deposit[7]

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Security deposit. The lessee has deposited with the lessor the sum of $_____ as security for the prompt and full payment of the rent and the performance of all provisions of this lease, and any extension or renewal of them. The lessor shall deposit this security in lessor's name, as trustee for the lessee, naming lessee, in an interest bearing account in the _________ Bank, _________ Street, _________. The security deposit and the interest earned on it, if any, shall remain the money of the lessee until it is returned or applied to rent payments or damages due the lessor as provided in this lease agreement. Pending such event, the lessor shall hold the money in trust, and it shall not be mingled with the personal money of the lessor or become an asset of the lessor. The lessor shall have the right but not the obligation to apply the security to curing any default by the lessee in the performance of any of the covenants contained in this lease agreement with respect to any item or items of equipment. Such application does not constitute a defense to any action by lessor arising out of the default. In the event of such application of the security to cure a default, the lessee, upon demand by the lessor, shall restore the security to the full amount. Provided the lessee has paid all of the rent required and has fully performed all other provisions this lease requires, the lessor shall return any remaining balance of the security upon the expiration, or earlier termination, extension or renewal, of this lease.

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