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There is no "On Hold" function you can do.

Simply do not log in.

Basic Accounts exist in perpetuity.

Premium Accounts however will be deleted by LL if they fall into arrears.

Note: If you do delete your account you risk inventory loss and LL may charge you a fee to reinstate.

See: Inactive or canceled accounts.

Edited by Perrie Juran
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It's just as Perrie says.

If you are a premium member, you'll have to revert to basic if you don't intend to continue paying the fee. If you own a Linden Home or land, you'll have to abandon it. Remove all your things before you do, or they'll be returned as a giant lump. Make sure you aren't a member of any groups that have tier or advertising fees, those can put your account into arrears and cause its cancellation.

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50 minutes ago, SedonaOnidene said:

Is there a time limit to how long you can put your account on hold?

I was away for 4 years with no loss or ill effects.  Theoretically there is no limit.  Linden Lab does not delete old accounts, not even those that have been canceled.

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