The form of the collateral provided.
Also known as: Collateral Form
By Angel Campa, Founder · Updated March 2026
The deposit type (cash, letter of credit, or surety bond) affects the tenant's liquidity and cost of capital. A cash deposit earns minimal interest while tying up working capital. A standby letter of credit from a bank costs 1-3% annually but preserves cash. A $100,000 security deposit held as cash for 10 years has an opportunity cost of $30,000-$70,000 depending on the tenant's cost of capital. The form also affects ease of recovery at lease end.
In the "Security Deposit" section. Look for whether the landlord accepts alternatives to cash, such as letters of credit from approved banks, surety bonds, or corporate guarantees in lieu of deposit.
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the deposit type from your lease PDF. The AI searches for the field name and common aliases like "Collateral Form" across all pages of the document, then assigns a confidence score based on OCR quality and extraction certainty. Fields with lower confidence are flagged for human review.
Security Deposit
The total collateral held by the landlord to ensure lease performance.
Has Guaranty
Indicates if an external party has guaranteed the lease obligations.
Governing Law
The legal jurisdiction whose laws dictate the interpretation of the contract.
SNDA Requirement
Duty to sign a Subordination, Non-Disturbance, and Attornment agreement.
Estoppel Turnaround
The number of days the tenant has to return a signed estoppel certificate.
A cash deposit transfers actual funds to the landlord, tying up the tenant's working capital. A letter of credit (LOC) is a bank guarantee that the landlord can draw on if the tenant defaults, but the tenant retains use of the underlying funds. LOCs cost 1-3% annually in bank fees but preserve liquidity.
Only if the lease permits it. Some leases allow the tenant to substitute a letter of credit for cash after a specified period of timely payment. This should be negotiated at lease signing. Converting mid-term without lease authorization requires landlord consent.
What accuracy can you realistically expect from AI lease abstraction tools? We break down field-level accuracy rates, where AI excels, where it struggles, and how to validate output.
Compare the top AI lease abstraction tools for commercial real estate in 2026. We review Lextract, Prophia, Kolena, Leasecake, MRI Software, and more — with pricing, accuracy, and use-case guidance.
Free AI lease abstraction tools are fast and easy — but they have real limitations. Here is what free tools deliver, what they miss, and when you need structured output instead.
Upload your lease PDF and Lextract will extract deposit type along with 98 other structured fields in minutes. Just $20 per lease.
Upload Your Lease