USE OF A WARRANTY DEPOSIT
1. GUARANTEE DEPOSIT
1.1 In order to secure performance of the obligations under the Contract, the LESSEE pays the LESSOR a Guarantee Deposit. The LESSOR uses the Guarantee Deposit by deducting from it the due and unpaid by the LESSEE amounts, within the term of the Contract. No prior notice is needed from the LESSOR to use the Guarantee Deposit for the respective purpose of it. The parties agree that the deposit will not be interest-bearing for the LESSEE.
1.2 The LESSOR informs the LESSEE about any use of the deposit, requiring it to be compensated to the agreed amount. Failure to pay the amount due within 7 days of the notification constitutes a substantial breach of the Contract by the LESSEE.
1.3 The LESSOR shall return the Guarantee Deposit (unused amount thereof) in a bank account specified by the LESSEE, until the 14th day of the month following the termination of the Contract, if all financial relations between the parties are settled by that date.