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Secured Loan Agreement for Indonesia

Secured Loan Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions of a loan facility backed by specific collateral or security interests. The document incorporates key provisions required under Indonesian secured lending regulations, including specific security creation and perfection requirements, registration procedures with relevant authorities, and enforcement mechanisms. It addresses both the lending relationship and the security package, ensuring compliance with Indonesian Civil Code requirements and specific regulations such as the Fiduciary Security Law and Mortgage Rights Law.

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Secured Loan Agreement

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What is a Secured Loan Agreement?

The Secured Loan Agreement serves as the primary documentation for lending arrangements where the loan is backed by collateral or security interests under Indonesian law. It is typically used when a lender requires security over specific assets as protection for their loan exposure, whether in corporate or individual lending scenarios. The agreement must comply with Indonesian secured lending regulations, including Law No. 42 of 1999 on Fiduciary Security and Law No. 4 of 1996 on Mortgage Rights, among others. The document details the loan terms, security package, representations, covenants, and enforcement mechanisms, while ensuring all security interests are properly created and perfected under local law requirements. It is essential for any secured lending transaction in Indonesia and must be structured to account for specific local law requirements regarding security creation, registration, and enforcement.

What sections should be included in a Secured Loan Agreement?

1. Parties: Identification of the lender, borrower, and any security providers or guarantors

2. Background: Context of the loan arrangement and security structure

3. Definitions: Definitions of key terms used throughout the agreement

4. Facility Terms: Amount, purpose, availability period, and drawdown conditions of the loan

5. Interest and Fees: Interest rate, calculation method, payment dates, and applicable fees

6. Repayment Terms: Repayment schedule, prepayment provisions, and payment mechanics

7. Security Arrangements: Description of security interests, creation, perfection requirements, and maintenance obligations

8. Representations and Warranties: Standard and specific representations by the borrower and security providers

9. Covenants: Positive and negative undertakings of the borrower

10. Events of Default: Circumstances constituting default and consequences

11. Enforcement: Rights and remedies upon default, including security enforcement procedures

12. Miscellaneous: Standard boilerplate provisions including notices, amendments, governing law

What sections are optional to include in a Secured Loan Agreement?

1. Guarantees: Required when there are personal or corporate guarantees supporting the loan

2. Insurance: Detailed insurance requirements when specific insurance coverage is required for secured assets

3. Security Agent Provisions: Required in syndicated loans where a security agent holds the security

4. Tax Provisions: Detailed tax provisions when cross-border elements exist or complex tax arrangements apply

5. Currency Provisions: Required when the loan involves multiple currencies

6. Registration Requirements: Detailed registration procedures when security requires specific registration formalities

7. Intercreditor Provisions: Required when multiple creditors are involved with different priority rights

What schedules should be included in a Secured Loan Agreement?

1. Conditions Precedent: List of required documents and conditions to be satisfied before drawdown

2. Security Assets Schedule: Detailed description of all assets subject to security interests

3. Repayment Schedule: Detailed amortization schedule if applicable

4. Form of Drawdown Request: Standard form for requesting loan disbursements

5. Form of Security Documents: Ƶ for various security documents required under Indonesian law

6. Form of Compliance Certificate: Template for periodic compliance reporting

7. Registration Requirements: Detailed procedures for security registration with relevant Indonesian authorities

8. Broker/Agent Details: Contact information for process agents if required

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions



































































Clauses











































Relevant Industries

Banking

Financial Services

Real Estate

Manufacturing

Agriculture

Mining

Infrastructure

Construction

Retail

Technology

Energy

Transportation

Healthcare

Hospitality

Education

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Corporate Banking

Loan Administration

Security Administration

Documentation

Risk Management

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Secretary

Treasury Manager

Credit Risk Manager

Loan Officer

Compliance Officer

Security Trustee Officer

Relationship Manager

Corporate Banking Manager

Credit Analyst

Legal Manager

Finance Manager

Risk Manager

Industries








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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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