Document background
An Account Pledge Agreement is a crucial security document used in Indonesian financing transactions where bank accounts serve as collateral. This document is typically used in project finance, corporate lending, and structured finance transactions where lenders require security over the borrower's cash flows and bank accounts. The agreement must comply with Indonesian law requirements, particularly the Civil Code provisions on pledges and banking regulations. It details the accounts being pledged, mechanics for account operation, enforcement rights, and contains necessary provisions for creating a valid and enforceable security interest under Indonesian law. The document is particularly important in transactions where cash management and control over cash flows are essential security components.
