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The Seller Financing Addendum is a crucial document used in Indonesian transactions where traditional bank financing is either unavailable or undesirable. It is commonly employed in property sales, asset transfers, and business acquisitions where the seller agrees to accept payments over time rather than a full payment at closing. This document must comply with Indonesian Civil Code requirements, financial services regulations, and relevant property laws. The addendum typically includes detailed payment terms, interest calculations, security arrangements, and default provisions. It is particularly useful in markets where bank financing is difficult to obtain or when sellers wish to generate ongoing income through interest payments. The document must be carefully drafted to ensure enforceability under Indonesian law and often requires notarization to be fully effective.

1. Parties: Identification of the Seller (as lender) and Buyer (as borrower), including complete legal names, addresses, and any registration numbers

2. Background: Reference to the main purchase agreement, explanation of the seller financing arrangement, and context of the addendum

3. Definitions: Key terms used in the addendum, including financial terms, security-related definitions, and references to the main agreement

4. Loan Amount and Terms: Specific details of the financing amount, interest rate, and payment terms

5. Payment Schedule: Detailed breakdown of payment obligations, including installment amounts, due dates, and payment methods

6. Security Arrangements: Description of any collateral, liens, or security interests being created to secure the financing

7. Default and Remedies: Consequences of default, cure periods, and available remedies for both parties

8. Representations and Warranties: Statements of fact and assurances from both parties regarding their capacity and authority

9. Registration and Compliance: Requirements for registering security interests and compliance with Indonesian financing regulations

10. Governing Law and Dispute Resolution: Confirmation of Indonesian law as governing law and dispute resolution mechanisms