2.3 You need to use an account name in Second Life which is not misleading, offensive or infringing. You must select and keep secure your account password.
You must choose an account name to identify yourself to Linden Lab staff (your "Account Name"


2.6 Linden Lab may suspend or terminate your account at any time, without refund or obligation to you.
Linden Lab has the right at any time for any reason or no reason to suspend or terminate your Account, terminate this Agreement, and/or refuse any and all current or future use of the Service without notice or liability to you. In the event that Linden Lab suspends or terminates your Account or this Agreement, you understand and agree that you shall receive no refund or exchange for any unused time on a subscription, any license or subscription fees, any content or data associated with your Account, or for anything else.
4.1 You agree to abide by certain rules of conduct, including the Community Standards and other rules prohibiting illegal and other practices that Linden Lab deems harmful.
(iv) take any action or upload, post, e-mail or otherwise transmit Content as determined by Linden Lab at its sole discretion that is harmful, threatening, abusive, harassing, causes tort, defamatory, vulgar, obscene, libelous, invasive of another's privacy, hateful, or racially, ethnically or otherwise objectionable;
5.3 All data on Linden Lab's servers are subject to deletion, alteration or transfer.
YOU UNDERSTAND AND AGREE THAT LINDEN LAB HAS THE RIGHT, BUT NOT THE OBLIGATION, TO REMOVE ANY CONTENT (INCLUDING YOUR CONTENT) IN WHOLE OR IN PART AT ANY TIME FOR ANY REASON OR NO REASON, WITH OR WITHOUT NOTICE AND WITH NO LIABILITY OF ANY KIND.
5.5 Linden Lab's liability to you is expressly limited, to the extent allowable under applicable law.
IN NO EVENT SHALL LINDEN LAB OR ANY OF ITS SHAREHOLDERS, PARTNERS, AFFILIATES, DIRECTORS, OFFICERS, SUBSIDIARIES, EMPLOYEES, AGENTS, SUPPLIERS, LICENSEES OR DISTRIBUTORS BE LIABLE TO YOU OR TO ANY THIRD PARTY FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES, INCLUDING WITHOUT LIMITATION ANY DAMAGES FOR LOST PROFITS, ARISING (WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE) OUT OF OR IN CONNECTION WITH THE SERVICE (INCLUDING ITS MODIFICATION OR TERMINATION), THE LINDEN SOFTWARE, YOUR ACCOUNT (INCLUDING ITS TERMINATION OR SUSPENSION) OR THIS AGREEMENT, WHETHER OR NOT LINDEN LAB MAY HAVE BEEN ADVISED THAT ANY SUCH DAMAGES MIGHT OR COULD OCCUR AND NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY REMEDY. IN ADDITION, IN NO EVENT WILL LINDEN LAB'S CUMULATIVE LIABILITY TO YOU FOR DIRECT DAMAGES OF ANY KIND OR NATURE EXCEED FIFTY DOLLARS (U.S. $50.00). Some jurisdictions do not allow the foregoing limitations of liability, so to the extent that any such limitation is impermissible, such limitation may not apply to you. You agree that Linden Lab cannot be held responsible or liable for anything that occurs or results from accessing or subscribing to the Service.
(correct me if I'm wrong, but this includes monthly service fees)
http://secondlife.com/corporate/billing.php
8. If your account is cancelled, Linden Lab may attempt to sell your virtual land in order to satisfy your existing obligations; in which case a resale fee not exceeding the land sale proceeds will be charged to you.
In the event that Linden Lab suspends or terminates your Account, you understand and agree that: (a) Linden Lab may attempt to sell at auction any "virtual land" (i.e. the instances of simulated land associated with your Account) that you hold in Second Life, and that any money received from such auctions will be applied to satisfy your existing obligations to Linden Lab and others, as determined by Linden Lab in its sole discretion; and (b) in addition to any money that you owe, you will be charged the lesser of (i) the aggregate amount received from such auctions and (ii) one hundred dollars ($100) (the "Resale Fee"

This one is kinda confusing, basically I think its saying LL MAY choose to return money to you after they sell your land, if it is over the fees you currently owe, for example if you own an island, can't pay the monthly fee, you get terminated, they sell the land, and they MAY return the extra money from the sale to you, minus an extra 100 dollars for resale fees.
As a final note, straight from the community standards.
http://secondlife.com/corporate/cs.php
5. Indecency
Second Life is an adult community, but Mature material is not necessarily appropriate in all areas (see Global Standards below). Content, communication, or behavior which involves intense language or expletives, nudity or sexual content, the depiction of sex or violence, or anything else broadly offensive must be contained within private land in areas rated Mature (M). Names of Residents, objects, places and groups are broadly viewable in Second Life directories and on the Second Life website, and must adhere to PG guidelines.
Now according to LLs own words, anything that is offensive is allowed so long as it is contained in private land mature areas. So I believe islands would satisfy this requirement.
Now I have read the tos top to bottom, and I have tried to find one thing that secures anyone from anything, copyright infringement, anything in the community standards, anything that helps keep you the customer safe from everything right up to loss of money due to computer error, and all I can find is things like this: YOU UNDERSTAND AND AGREE THAT LINDEN LAB HAS THE RIGHT, BUT NOT THE OBLIGATION
I encourage anyone, to correct my opinions stated here, I will edit this post to reflect corrections, but the way it looks to me, this TOS does next to nothing. It guarantees nothing, it secures nothing, your account and your money are at the sole discretion of LL to do with as they will.