TRANSFER & SECURITY · CRITICAL REVIEW PRIORITY
Guarantee, indemnifier and security deposit
Defines deposits, letters of credit, guarantees or indemnities supporting tenant obligations, including reduction, replenishment, transfer and release.
This is not model language.
The actual meaning depends on the complete lease, amendments, facts and governing law. Use the prompts below to extract and brief the issue; do not paste this page into a lease as a substitute for drafting and legal review.
Questions to answer before the legal call
- When and how does security reduce or terminate?
- What financial or default tests control release?
- Who holds, transfers and returns the instrument after a property sale?
What to capture from the document
Security form and amount
Record cash, letter of credit, guarantee, issuer and expiry.
Draw and replenishment
Capture notice, permitted draws, application and restoration duties.
Reduction and release
Record dates, tests, evidence, partial release and transfer obligations.
Patterns that deserve a closer read
- Evergreen instrument with no objective reduction path
- Guarantor obligations broader or longer than tenant obligations
- Security release dependent on undefined landlord satisfaction
A focused instruction for legal review
Reconcile the lease and separate security instrument on amount, draw, renewal, reduction, release, assignment, liability survival and insolvency treatment.
Jurisdiction and statutory context
These sources support limited context only. They do not decide how the actual lease operates.
Canada — Bankruptcy and Insolvency Act, section 65.2 ↗Federal rules addressing disclaimer or resiliation of a commercial lease in a proposal proceeding.Canada — Companies’ Creditors Arrangement Act, section 32 ↗Federal restructuring provisions addressing disclaimer or resiliation of agreements and the statutory exceptions.