Definitions for "Refundable Security Deposit"
Keywords:  lessor, lessee, mileage, lease, unpaid
An amount collected by the lessor at the beginning of the lease to ensure the lessee's compliance with the terms of the lease. The security deposit is generally refundable at lease end, provided there are no excess mileage, excessive wear and use charges, outstanding parking tickets, or unpaid lease payments.
This amount is used to cover any damage or outstanding charges due when the lease term expires. There is no requirement for the lessor to pay interest on the money held.
A security deposit paid at the inception of the lease by the lessee with the understanding that it will be returned to the lessee at the end of the lease if all payments have been timely made and the lessee otherwise has properly performed as agreed.