Ƶ

Marginal Deposit On Letter Of Credit for Indonesia

Marginal Deposit On Letter Of Credit Template for Indonesia

A Marginal Deposit on Letter of Credit agreement is a legal document governed by Indonesian law that establishes the terms and conditions under which a bank customer must maintain a cash deposit as security for a Letter of Credit facility. The document details the deposit requirements, maintenance obligations, bank's rights, and customer's responsibilities under Indonesian banking regulations and relevant Bank Indonesia directives. It includes provisions for deposit calculation, currency considerations, release conditions, and default scenarios, all structured within the Indonesian legal framework for banking and trade finance operations.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Marginal Deposit On Letter Of Credit

Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

What is a Marginal Deposit On Letter Of Credit?

The Marginal Deposit On Letter of Credit agreement is a critical document in Indonesian trade finance operations, typically required when a bank issues a Letter of Credit (L/C) facility to a customer. This document becomes necessary when the bank requires cash security against the L/C exposure, which is common practice in Indonesian banking. The agreement details how the marginal deposit will be calculated (usually a percentage of the L/C value), maintained, and eventually released. It operates within Indonesia's banking regulatory framework, particularly adhering to Bank Indonesia regulations and the Indonesian Banking Law. The document is essential for businesses engaged in international trade using L/Cs as a payment mechanism, providing security to the issuing bank while facilitating trade transactions.

What sections should be included in a Marginal Deposit On Letter Of Credit?

1. Parties: Identification of the Bank and the Customer (L/C applicant)

2. Background: Context of the agreement, reference to the underlying Letter of Credit application, and purpose of the marginal deposit

3. Definitions: Definition of key terms including 'Marginal Deposit', 'Letter of Credit', 'Deposit Account', and other relevant terms

4. Deposit Requirements: Details of the marginal deposit amount, calculation method (percentage of L/C value), and deposit timing

5. Deposit Maintenance: Obligations to maintain the required deposit level and top-up requirements

6. Bank's Rights and Authority: Bank's rights over the deposit, including set-off rights and authority to debit

7. Customer's Obligations: Customer's responsibilities regarding the deposit maintenance and L/C operations

8. Interest and Fees: Terms regarding any interest payable on the deposit and associated fees

9. Term and Release: Duration of the deposit requirement and conditions for release

10. Events of Default: Circumstances constituting default and consequences

11. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes

12. Notices: Communication methods and contact details for official notices

13. Execution: Signature blocks and execution requirements

What sections are optional to include in a Marginal Deposit On Letter Of Credit?

1. Currency Provisions: Required when the L/C and deposit are in different currencies, specifying exchange rate mechanisms and currency risk management

2. Additional Security: Used when additional security beyond the marginal deposit is required

3. Multiple L/C Provisions: Required when the deposit serves as security for multiple Letters of Credit

4. Tax Provisions: Detailed tax clauses required when tax implications are significant or complex

5. Force Majeure: Extended force majeure provisions when required by bank policy or specific circumstances

6. Assignment: Required when assignment or transfer rights need to be specifically addressed

7. Electronic Banking Provisions: Required when electronic banking facilities are used for deposit management

What schedules should be included in a Marginal Deposit On Letter Of Credit?

1. Schedule 1 - Letter of Credit Details: Details of the underlying Letter of Credit(s) covered by the marginal deposit

2. Schedule 2 - Deposit Calculation Method: Detailed methodology for calculating the required deposit amount

3. Schedule 3 - Fee Schedule: Breakdown of all applicable fees and charges

4. Schedule 4 - Authorized Signatories: List of authorized persons who can give instructions regarding the deposit

5. Appendix A - Standard Operating Procedures: Bank's standard procedures for marginal deposit management

6. Appendix B - Required Forms: Standard forms for deposit-related instructions and communications

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

Letter of Credit

Cost

Free to use
Relevant legal definitions









































Clauses

































Relevant Industries

Banking and Financial Services

International Trade

Manufacturing

Import/Export

Commodities Trading

Retail

Agriculture

Mining

Oil and Gas

Textiles

Construction

Shipping and Logistics

Relevant Teams

Legal

Finance

Treasury

International Trade

Trade Finance

Risk Management

Compliance

Corporate Banking

Documentary Credits

Credit Administration

Relevant Roles

Trade Finance Manager

Treasury Manager

Chief Financial Officer

Finance Director

Import/Export Manager

Banking Relationship Manager

Legal Counsel

Compliance Officer

Financial Controller

Credit Risk Manager

Trade Operations Manager

Corporate Banking Officer

Documentary Credits Specialist

International Business 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

Find the exact document you need

Letter Of Credit Loan

An Indonesian law-governed agreement establishing terms for letter of credit facilities between a bank and borrower, complying with local banking regulations and international practices.

find out more

Lc Trade (Finance)

An Indonesian-law governed Letter of Credit document that provides secured payment mechanism for international trade transactions, compliant with local banking regulations and international standards.

find out more

Lc At Sight Terms

Letter of Credit at Sight terms document under Indonesian law, establishing bank payment commitments for international trade transactions.

find out more

Biaya Letter Of Credit

An Indonesian law-governed agreement establishing fees and payment terms for Letter of Credit services between a bank and its client.

find out more

Trade Lc

An Indonesian-law governed Trade Letter of Credit document that facilitates secure international trade transactions through bank-guaranteed payment commitments.

find out more

Lc Document

A bank-issued payment guarantee document for international trade transactions, governed by Indonesian banking laws and UCP 600.

find out more

Payment Terms SBLC

Indonesian law-governed document establishing terms and conditions for Standby Letter of Credit payment arrangements, including banking obligations and compliance requirements.

find out more

Import Bill Under Lc

Indonesian Import Bills Under LC agreement outlining terms and conditions for documentary credit operations under Indonesian law and international trade practices.

find out more

Lc For Payment

A bank-issued payment guarantee document under Indonesian law that ensures secure payment in international trade transactions, subject to document compliance.

find out more

Lc Facility

An Indonesian law-governed agreement establishing terms for a bank to issue letters of credit for a corporate client, combining local banking regulations with international trade practices.

find out more

Letter Of Credit Limit

An Indonesian law-governed agreement establishing a revolving facility for issuing Letters of Credit up to a predetermined limit.

find out more

Lc Invoice

An LC Invoice is a formal trade document used in letter of credit transactions, compliant with Indonesian trade laws and international banking standards.

find out more

SBLC As Collateral

An Indonesian law-governed agreement establishing terms for using a Standby Letter of Credit as collateral security, compliant with local banking regulations.

find out more

Application Letter For Lc

A formal application document used in Indonesia to request a bank to issue a Letter of Credit, governed by Indonesian banking laws and international trade practices.

find out more

Marginal Deposit On Letter Of Credit

An Indonesian law-governed agreement establishing terms for maintaining a cash deposit as security for a Letter of Credit facility.

find out more

Loan Against Letter Of Credit

An Indonesian law-governed agreement for providing bank financing against a Letter of Credit as security, commonly used in international trade transactions.

find out more

Lc Payment Terms In Export

Indonesian law-compliant Letter of Credit payment terms agreement for export transactions, incorporating local regulations and international banking practices.

find out more

Direct Pay Letter Of Credit

An Indonesian law-governed bank undertaking that guarantees payment to a beneficiary upon presentation of compliant documents in international trade transactions.

find out more

Sblc Trade (Finance)

An Indonesian law-governed agreement establishing terms and conditions for issuing and managing Standby Letters of Credit in international trade transactions.

find out more

Lc Export Import

An Indonesian law-governed Letter of Credit Export Import agreement facilitating secure international trade transactions with standardized payment and documentation requirements.

find out more

SBLC DLC

A bank-issued financial instrument under Indonesian law that provides payment security in international trade and financial transactions, governed by local banking regulations and international standards.

find out more

Credit Letter In Business Communication

An Indonesian law-governed banking document that establishes credit arrangements between financial institutions and businesses, operating under Indonesia's banking regulations and financial authority oversight.

find out more

Collateral For Letter Of Credit

An Indonesian law-governed security agreement establishing collateral arrangements for Letter of Credit facilities, compliant with local banking and security regulations.

find out more

Cash Backed SBLC

An Indonesian law-governed agreement for a cash-collateralized Standby Letter of Credit, establishing terms between bank, applicant, and beneficiary.

find out more

SBLC Transferable

A transferable bank guarantee instrument governed by Indonesian law that allows the beneficiary to transfer their rights to receive payment to another party.

find out more

SBLC Non Recourse Loan

An Indonesian law-governed loan agreement secured by SBLC with non-recourse provisions, combining local regulatory compliance with international banking practices.

find out more

Letter Of Credit Risk

Risk management framework for Letter of Credit transactions under Indonesian law, incorporating local banking regulations and international standards.

find out more

Letter Of Credit Fee

An Indonesian banking document specifying fees and charges for Letter of Credit services, governed by Indonesian banking laws and Bank Indonesia regulations.

find out more

Letter Of Credit Duration

A formal banking document used in Indonesia to modify the duration of an existing Letter of Credit, governed by Indonesian banking regulations and international trade practices.

find out more

Lc Finance Term

Indonesian law-governed Letter of Credit financing facility agreement establishing terms for LC issuance and trade finance operations.

find out more

Letter Of Credit Payment Terms

An Indonesian law-governed document specifying Letter of Credit payment terms and conditions for international trade transactions, aligned with Bank Indonesia regulations and UCP 600.

find out more

Guarantee Letter Of Credit

An Indonesian law-governed banking instrument that provides a bank's guarantee of payment to a beneficiary upon presentation of compliant documents under UCP 600 rules.

find out more

Credit Facility Offer Letter

An Indonesian law-governed formal letter from a bank to a prospective borrower detailing approved credit facility terms and conditions.

find out more

Cash Collateralized Letter Of Credit

An Indonesian law-governed agreement establishing terms for a Cash Collateralized Letter of Credit facility, detailing collateral requirements and LC issuance procedures.

find out more

Application For Letter Of Credit

An Indonesian-law governed application form for requesting a bank to issue a Letter of Credit, following Bank Indonesia regulations and international banking practices.

find out more

SBLC Buyers

An Indonesian law-governed agreement between a buyer and bank for the issuance of a Standby Letter of Credit (SBLC), outlining terms, conditions, and compliance requirements.

find out more

SBLC Backed Buyers Credit

An Indonesian law-governed financing agreement establishing an SBLC-backed buyers credit facility with associated terms, conditions, and security arrangements.

find out more

SBLC At Sight

An Indonesian law-governed bank guarantee instrument that provides immediate payment upon compliant document presentation, combining local banking regulations with international practices.

find out more

Transferring Bank In Lc

An Indonesian law-governed document facilitating the transfer of Letters of Credit rights from first to second beneficiary, compliant with UCP 600 and local banking regulations.

find out more

Revolving SBLC

An Indonesian law-governed Revolving SBLC agreement establishing a renewable credit facility with automatic reinstatement provisions.

find out more
See more related templates

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it