��������Ƶ

The Loan Modification Agreement is a crucial document used when parties need to alter the terms of an existing loan arrangement under Indonesian law. This document becomes necessary during various circumstances, such as when a borrower requires payment restructuring, interest rate adjustments, or term extensions. It's particularly relevant in the context of Indonesian banking regulations, where loan modifications must comply with OJK guidelines and Bank Indonesia regulations. The agreement carefully preserves the original loan's validity while incorporating approved changes, ensuring all modifications are properly documented and legally binding. This document type has gained increased importance following regulatory changes that provide greater flexibility for loan restructuring, especially in response to economic challenges. The agreement must be carefully drafted to comply with Indonesian Civil Code requirements for contract modifications and specific banking sector regulations regarding loan quality assessment and restructuring procedures.

1. Parties: Identification of the lender and borrower, including their complete legal names, addresses, and registration details

2. Background: Details of the original loan agreement, reasons for modification, and reference to the authority to modify

3. Definitions: Key terms used in the agreement, including references to the original loan agreement terms

4. Amendments to Original Agreement: Specific modifications to the original loan terms, clearly stating both original and new terms

5. Effective Date: When the modifications take effect and any conditions precedent

6. Continuing Effect: Confirmation that all other terms of the original agreement remain in force

7. Representations and Warranties: Borrower's confirmation of continued accuracy of original representations and any new representations

8. Governing Law: Confirmation of Indonesian law as governing law

9. Execution: Signature blocks and execution requirements under Indonesian law