earnest payment

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earnest payment

n. a deposit paid to demonstrate commitment and to bind a contract, with the remainder due at a particular time. If the contract is breached by failure to pay, then the earnest payment is kept by the recipient as pre-determined (liquidated) or committed damages.

See: pledge, security
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For the Prospect Medical Office Building transaction, GMR's earnest money deposit will become non-refundable at the end of the due diligence period on October 14, 2016.
For the NOMS portfolio, GMR's assumption of the purchase contract will be effective if GMR elects to proceed with the closing and reimburses the assignor's earnest money deposit by September 30, 2016, which is the expected closing date for the initial five buildings in the portfolio.
GMR would be required to make an additional non-refundable earnest money deposit in order to close all seven properties in the portfolio.
On August 11, 1995, Crystallume executed a definitive purchase agreement and made a non- refundable earnest money deposit of $750,000 towards the purchase price, using funds provided to the Company by certain institutional shareholders.
Crystallume has made a non-refundable earnest money deposit of $750,000 towards the purchase price, using funds provided to the Company by certain institutional shareholders.