32.1
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If a requirement for a Security Deposit is provided for in Item (14) for the purpose of securing the performance by the Lessee of its obligations under this Lease Contract, the Lessee must:
(a)
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lodge with the Lessor a cash deposit in the amount provided for in Item (14); or
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(b)
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arrange for the issue of an unconditional bank guarantee, in favour of the Lessor which does not have an expiry date.
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for the purpose of securing the performance by the Lessee of its obligations under this Lease Contract.
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32.2
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On the sale or the transfer of the Premises the Lessor may assign its right with respect to the Security Deposit to the purchaser and upon notifying the Lessee the Lessor will be released from all obligations in relation to the Security Deposit. Where the Security Deposit is not assignable, the Lessee will cause a replacement Security Deposit to be issued in favour of the purchaser the reasonable costs of which will be met by the Lessor. Where a replacement Security Deposit has been issued the original Security Deposit must be released to the Lessee.
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32.3
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The Lessor may apply the Lessee’s Security Deposit towards compensation for any loss or damage incurred or sustained by the Lessor due to the Lessee’s failure to comply with any of its obligations under this Lease Contract. Provided however, before exercising its rights, the Lessor must give the Lessee 7 days notice to remedy the failure.
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32.4
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Where the Lessor has had recourse to the Security Deposit the Lessee must top up the Security Deposit to reinstate the amount specified in Item (14).
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32.5
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The Lessor’s exercise of its rights with respect to the Security Deposit does not prejudice any other rights of the Lessor arising from a breach of the terms of the Lease Contract.
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32.6
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The Lessor will as soon as practicable after the end of the Lease Term or any extension of the Lease Term cause to be released, subject to any unsatisfied claim under Clause 32.3, the Security Deposit to the Lessee.
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327
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Investment of Deposit:
Where the parties agree to invest the Security Deposit, then:
32.2(1)
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The Lessor will invest any cash deposit with a Bank, Building Society or Credit Union in an interest bearing account.
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32.3(2)
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The interest on the cash deposit will form part of the Security Deposit and be paid to the party who becomes, and is entitled, to the cash deposit at the end of the Lease Term.
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32.4(3)
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The parties will supply to the Deposit Holder at the Date of Lease Contract, their tax file numbers in order to assist with the investing of the Deposit.
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32.5
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On the sale or the transfer of the Premises the Lessor may assign its right with respect to the Security Deposit to the purchaser and upon notifying the Lessee the Lessor will be released from all obligations in relation to the Security Deposit. Where the Security Deposit is not assignable, the Lessee will cause a replacement Security Deposit to be issued in favour of the purchaser the reasonable costs of which will be met by the Lessor. Where a replacement Security Deposit has been issued the original Security Deposit must be released to the Lessee.
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32.6
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The Lessor may apply the Lessee’s Security Deposit towards compensation for any loss or damage incurred or sustained by the Lessor due to the Lessee’s failure to comply with any of its obligations under this Lease Contract. Provided however, before exercising its rights, the Lessor must give the Lessee 7 days notice to remedy the failure.
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32.7
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Where the Lessor has had recourse to the Security Deposit the Lessee must top up the Security Deposit to reinstate the amount specified in Item (14).
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32.8
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The Lessor’s exercise of its rights with respect to the Security Deposit do not prejudice any other rights of the Lessor arising from a breach of the terms of the Lease Contract.
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32.9
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The Lessor will as soon as practicable after the end of the Lease Term or any extension of the Lease Term release, subject to any unsatisfied claim under Clause 32.3, the Security Deposit to the Lessee.
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