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Guarantee Agreement For Loan for Indonesia

Guarantee Agreement For Loan Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes a guarantee obligation where one party (the Guarantor) commits to secure the debt obligations of another party (the Principal Debtor) to a creditor. The agreement is structured in accordance with the Indonesian Civil Code (KUH Perdata) and relevant banking regulations, incorporating specific provisions for enforcement under Indonesian jurisdiction. It details the scope of the guarantee, payment obligations, enforcement mechanisms, and includes necessary representations and warranties to ensure legal compliance and enforceability within the Indonesian legal framework.

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Guarantee Agreement For Loan

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What is a Guarantee Agreement For Loan?

The Guarantee Agreement For Loan is a crucial document in Indonesian business and banking practice, used when a third party (Guarantor) agrees to secure the loan obligations of a borrower. This agreement is particularly important in commercial lending scenarios where additional security is required by financial institutions. The document must comply with Indonesian Civil Code provisions, banking regulations, and OJK (Financial Services Authority) requirements. It typically includes detailed sections on the guarantee scope, enforcement mechanisms, and parties' rights and obligations. The agreement becomes especially relevant in corporate financing, project financing, and other commercial lending situations where the creditor requires additional security beyond the borrower's own assets or creditworthiness. The document's structure and content are specifically tailored to ensure enforceability under Indonesian law and to protect the interests of all parties involved.

What sections should be included in a Guarantee Agreement For Loan?

1. Parties: Identification of the Guarantor, the Creditor (typically a bank or financial institution), and the Principal Debtor

2. Background: Context of the guarantee, including reference to the underlying loan agreement and the relationship between the parties

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

4. Guarantee: Core provisions detailing the scope and nature of the guarantee obligation

5. Representations and Warranties: Guarantor's confirmations regarding their capacity, authority, and financial condition

6. Payment Obligations: Terms governing how and when the guarantor must make payments upon default

7. Continuing Security: Provisions establishing the guarantee as a continuing obligation

8. Indemnity: Guarantor's obligation to indemnify the creditor against losses

9. Preservation of Rights: Creditor's rights preservation and ability to pursue multiple remedies

10. Demand and Enforcement: Process for making demands under the guarantee and enforcement procedures

11. Expenses and Taxes: Allocation of costs, expenses, and tax obligations

12. Notices: Communication procedures between parties

13. Governing Law and Jurisdiction: Confirmation of Indonesian law as governing law and jurisdiction for disputes

14. Execution: Signature blocks and execution formalities

What sections are optional to include in a Guarantee Agreement For Loan?

1. Corporate Authority: Required when the guarantor is a corporation, detailing corporate approvals and authority

2. Security Interest: Included when specific assets are pledged as additional security for the guarantee

3. Currency Provisions: Required for cross-border transactions involving multiple currencies

4. Change of Control: Included when the guarantor's ownership structure is significant to the guarantee

5. Financial Covenants: Added when the guarantor must maintain specific financial metrics

6. Joint and Several Liability: Required when multiple guarantors are involved

7. Assignment and Transfer: Included when rights under the guarantee may need to be transferred

8. Force Majeure: Optional provisions for extraordinary events affecting performance

What schedules should be included in a Guarantee Agreement For Loan?

1. Schedule 1 - Form of Demand: Standard template for making demands under the guarantee

2. Schedule 2 - Underlying Loan Agreement: Copy or key terms of the principal loan agreement being guaranteed

3. Schedule 3 - Corporate Authorizations: Copies of relevant corporate approvals and resolutions

4. Schedule 4 - Secured Assets: List and description of any assets specifically secured under the guarantee

5. Schedule 5 - Financial Statements: Recent financial statements of the guarantor if required

6. Appendix A - Power of Attorney: Standard form of power of attorney for enforcement purposes

7. Appendix B - Compliance Certificates: Templates for ongoing compliance certification 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 & Property

Manufacturing

Construction

Infrastructure

Retail & Commerce

Energy & Resources

Agriculture

Technology

Transportation & Logistics

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Corporate Secretariat

Banking Operations

Corporate Finance

Risk Management

Contract Administration

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Banking Relationship Manager

Credit Risk Manager

Compliance Officer

Treasury Manager

Contract Manager

Company Secretary

Risk Officer

Financial Controller

Corporate Finance Manager

Legal Director

Bank 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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