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Third Party Loan Agreement for Indonesia

Third Party Loan Agreement Template for Indonesia

A comprehensive loan agreement governed by Indonesian law that facilitates lending arrangements where a third party provides security or guarantees for the borrower's obligations. The document incorporates specific requirements under Indonesian banking regulations and civil code, including mandatory provisions for security arrangements, currency considerations, and regulatory compliance. It addresses the tripartite relationship between lender, borrower, and third-party security provider/guarantor, detailing the rights, obligations, and remedies available to all parties while ensuring compliance with Indonesian financial services regulations and security enforcement mechanisms.

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Third Party Loan Agreement

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What is a Third Party Loan Agreement?

This Third Party Loan Agreement template is designed for use in Indonesian financing transactions where a third party provides security or guarantees to support a borrower's loan obligations. It is particularly relevant when the borrower requires additional credit support to secure financing, common in both corporate and individual lending scenarios. The document comprehensively addresses requirements under Indonesian law, including the Civil Code (KUH Perdata) and Financial Services Authority (OJK) regulations, while incorporating necessary provisions for security registration, enforcement, and regulatory compliance. The agreement includes detailed sections on security arrangements, payment mechanics, events of default, and remedies, tailored specifically to the Indonesian legal framework. It's structured to accommodate various types of third-party security arrangements, from personal guarantees to asset security, while ensuring enforceability under Indonesian law.

What sections should be included in a Third Party Loan Agreement?

1. Parties: Identification of all parties: Lender, Borrower, and any Third-Party guarantors or security providers

2. Background: Context of the loan agreement, relationship between parties, and purpose of the loan

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

4. Loan Amount and Purpose: Specification of the loan amount, currency, and permitted use of funds

5. Disbursement: Conditions precedent to disbursement, disbursement mechanics and procedure

6. Interest: Interest rate, calculation method, payment periods, and default interest provisions

7. Repayment: Repayment schedule, prepayment provisions, and payment mechanics

8. Representations and Warranties: Standard representations and warranties from all parties

9. Covenants: Positive and negative covenants applicable to the borrower and other parties

10. Events of Default: List of events constituting default and consequences thereof

11. Taxes: Tax obligations and withholding requirements

12. Changes to Parties: Assignment and transfer provisions

13. Notices: Communication procedures between parties

14. Governing Law and Jurisdiction: Choice of Indonesian law and jurisdiction provisions

15. Execution: Signature blocks and execution requirements

What sections are optional to include in a Third Party Loan Agreement?

1. Security: Required if the loan is secured by any assets or guarantees

2. Currency Protection: Include if loan is in foreign currency, addressing exchange rate risks

3. Third Party Guarantor Provisions: Required if there is a third-party guarantor

4. Agent Provisions: Include if there are multiple lenders requiring an agent

5. Registration Requirements: Include if loan requires registration with Indonesian authorities

6. Sanctions and Anti-Money Laundering: Include for cross-border loans or when required by lender policy

7. Information Undertakings: Include if specific reporting requirements are needed

What schedules should be included in a Third Party Loan Agreement?

1. Conditions Precedent: List of all documents and conditions required before disbursement

2. Repayment Schedule: Detailed amortization table or repayment dates

3. Form of Disbursement Request: Standard form for requesting loan disbursements

4. Security Details: Details of any security or collateral if applicable

5. Form of Compliance Certificate: Template for periodic compliance certification

6. Fee Schedule: Breakdown of all applicable fees and charges

7. Contact Details: Complete contact information for all parties

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

Infrastructure

Energy

Mining

Agriculture

Retail

Technology

Transportation & Logistics

Healthcare

Education

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Credit

Corporate Secretariat

Business Development

Operations

Management

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Secretary

Treasury Manager

Risk Manager

Compliance Officer

Credit Manager

Banking Relationship Manager

Security Trustee

Loan Officer

Financial Controller

General Counsel

Managing Director

Business Development Manager

Industries







Teams

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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