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Security Sharing Agreement for Indonesia

Security Sharing Agreement Template for Indonesia

A comprehensive agreement governed by Indonesian law that establishes the framework for multiple creditors to share security interests over common assets. The document outlines the ranking and priority rights of various security holders, enforcement mechanisms, and distribution of proceeds. It incorporates specific requirements under Indonesian security and financial services regulations, including OJK requirements and civil code provisions. The agreement typically includes detailed provisions for security agent appointment, decision-making processes, and enforcement procedures compliant with Indonesian security enforcement rules.

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What is a Security Sharing Agreement?

A Security Sharing Agreement is essential in complex financing arrangements where multiple creditors hold security interests over the same assets. This document type is particularly relevant in Indonesia where security interests are subject to specific registration and enforcement requirements under various regulations including the Indonesian Civil Code, OJK regulations, and specific security laws. The agreement establishes clear mechanisms for sharing and enforcing security interests, ranking of creditors, distribution of enforcement proceeds, and collective decision-making processes. It addresses unique aspects of Indonesian security law such as fiduciary security registration requirements, land mortgage provisions, and specific enforcement procedures. The document is commonly used in project finance, syndicated lending, and other multi-creditor arrangements where coordinated security management is crucial.

What sections should be included in a Security Sharing Agreement?

1. Parties: Identification of all security holders, security agent (if any), and the security provider

2. Background: Context of the security arrangement, reference to underlying facilities/obligations, and purpose of the agreement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

4. Appointment of Security Agent: Terms of appointment, powers, and duties of the security agent

5. Security Sharing Principles: Core principles governing the sharing arrangement, including ranking and priority rights

6. Administration of Security: Procedures for managing and maintaining the shared security

7. Enforcement of Security: Process and conditions for enforcing security interests

8. Application of Proceeds: Rules for distributing proceeds from enforcement or realization of security

9. Decision Making: Voting mechanisms and majority requirements for key decisions

10. Costs and Expenses: Allocation of costs related to security maintenance and enforcement

11. Representations and Warranties: Standard representations by all parties

12. Changes to Parties: Rules for transfer, assignment, and accession of new parties

13. Notices: Communication procedures between parties

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

What sections are optional to include in a Security Sharing Agreement?

1. Security Agent Provisions: Detailed provisions for security agent's role - only needed if a security agent structure is used

2. Intercreditor Provisions: Additional provisions governing relationship between different classes of creditors - needed for complex multi-tiered arrangements

3. Standstill Provisions: Provisions restricting individual enforcement actions - relevant for multiple creditor scenarios

4. Buy-out Rights: Rights of certain creditors to buy out others' interests - optional for sophisticated arrangements

5. New Debt Provisions: Rules for accommodating additional secured debt - needed if future facilities are contemplated

6. Currency Provisions: Rules for handling multiple currencies - needed if multiple currencies are involved

What schedules should be included in a Security Sharing Agreement?

1. Security Assets Schedule: Detailed list of all assets subject to shared security interests

2. Initial Security Holders: List of initial security holders and their respective shares/rankings

3. Form of Accession Deed: Template for new parties joining the agreement

4. Security Documents: List of all related security documents covered by the sharing arrangement

5. Enforcement Procedures: Detailed procedures for security enforcement

6. Contact Details: Contact information for all parties and authorized representatives

7. Form of Transfer Certificate: Template for transferring rights under the agreement

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

Security Agreement

Cost

Free to use
Relevant legal definitions













































Clauses






























Relevant Industries

Banking and Financial Services

Infrastructure

Real Estate

Energy and Resources

Manufacturing

Telecommunications

Transportation

Construction

Mining

Power Generation

Oil and Gas

Industrial Development

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Finance

Credit

Project Finance

Syndications

Security Administration

Relevant Roles

Chief Financial Officer

Legal Counsel

Finance Director

Treasury Manager

Corporate Finance Manager

Risk Manager

Compliance Officer

Security Trustee

Facility Agent

Project Finance Manager

Syndication Manager

Credit Risk Officer

General Counsel

Banking Relationship 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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