A Lien Release Letter is essential in Indonesian business and financial transactions where secured interests need to be formally terminated. This document is required when a debt or obligation secured by a lien has been fully satisfied, or when parties agree to release the security interest for other reasons. The letter must comply with Indonesian law, particularly the Civil Code (KUHPerdata), Law No. 4 of 1996 on Land Mortgages, and Law No. 42 of 1999 on Fiduciary Security. It typically includes specific details about the original lien, the secured assets, and clear release language. The document is crucial for clearing title records and enabling assets to be transferred or used as security for new transactions.
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1. Letter Header: Official letterhead, date, and reference number of the letter
2. Recipient Details: Complete name and address of the recipient (debtor or debtor's representative)
3. Subject Line: Clear indication that this is a Lien Release Letter with reference to the original lien
4. Lien Identification: Details of the original lien including registration numbers, date of creation, and secured assets
5. Release Declaration: Formal statement releasing the lien and confirming full satisfaction of the underlying obligation
6. Authorization Statement: Confirmation of the lienholder's authority to release the lien
7. Effective Date: Specification of when the release takes effect
8. Signature Block: Signature, name, and title of authorized representative of the lienholder
1. Partial Release Statement: Used when only part of the secured assets are being released from the lien
2. Registration Instructions: Include when specific actions are required to register the release with government authorities
3. Multiple Lienholder Acknowledgment: Required when there are multiple lienholders and their interests need to be addressed
4. Conditions Precedent: Include if the release is subject to certain conditions being met
5. Governing Law Statement: Optional statement confirming Indonesian law governs the release, particularly useful in international transactions
1. Original Lien Documentation: Copy of the original lien or security agreement being released
2. Proof of Debt Settlement: Evidence that the underlying obligation has been satisfied
3. Corporate Authority Documentation: Evidence of the signatory's authority to execute the release
4. Asset Description: Detailed description of the assets being released, particularly important for partial releases
5. Registration Certificates: Copies of relevant registration certificates for the original lien
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Real Estate
Manufacturing
Construction
Agriculture
Mining
Commercial Lending
Industrial
Retail
Infrastructure Development
Transportation
Energy
Relevant Teams
Legal
Finance
Compliance
Risk Management
Credit Administration
Corporate Secretariat
Treasury
Asset Management
Loan Operations
Collections
Property Management
Relevant Roles
Legal Counsel
Corporate Secretary
Finance Director
Credit Manager
Compliance Officer
Risk Manager
Property Manager
Asset Manager
Banking Officer
Security Trustee Officer
Collections Manager
Loan Officer
Chief Financial Officer
Legal Director
Treasury Manager
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