What security supports the lease, and when can it be reduced or released?
Use this page to compare deposits, prepaid rent, letters of credit, guarantees and indemnities by amount, duration, draw rights, cost and release conditions.
See what this page does ↓A guide that turns this lease term into a practical next step.
Use this page to compare deposits, prepaid rent, letters of credit, guarantees and indemnities by amount, duration, draw rights, cost and release conditions.
What are you trying to do?
Choose your side and the situation you are dealing with. We will show you what it probably means, what to check first and where to continue.
Important: This helps you understand and organize the issue. The signed lease, amendments, facts and applicable law still need qualified review.
Use this when one of these situations is real.
Understand liquidity cost, continuing liability and the exact evidence needed for reduction.
Match the form and duration of support to the reviewed credit and transaction exposure.
Turn the clause into a controlled decision.
- 01
Inventory every security document and current amount.
- 02
Record draw, replenishment, expiry, transfer and renewal requirements.
- 03
Map objective reduction and release conditions with evidence.
- 04
Compare cost and support value without assuming enforceability or collection.
This page is a practical checklist—not lease wording.
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.
What the business team needs to know
- 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.
Terms that can change the practical outcome
- Evergreen instrument with no objective reduction path
- Guarantor obligations broader or longer than tenant obligations
- Security release dependent on undefined landlord satisfaction
What qualified counsel needs to test
Reconcile the lease and separate security instrument on amount, draw, renewal, reduction, release, assignment, liability survival and insolvency treatment.
Leasing-pipeline handoff: Carry only the sourced space, current stage, proposed term, economics, conditions, activity and next action into the landlord pipeline. A stage or probability does not establish authority, market rent, tenant credit, legal completion, collection, accounting treatment or occupancy.
Amendment-control handoff: Carry the executed source, authority, effective date, changed categories, revised term and approval evidence into Lease Amendment & Change Control. The workspace sequences entered facts; it does not interpret wording, establish enforceability or replace legal, accounting or tax review.
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.