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Asset Pledge Agreement Template for Indonesia

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Key Requirements PROMPT example:

Asset Pledge Agreement

"I need an Asset Pledge Agreement under Indonesian law for pledging manufacturing equipment and inventory as security for a 5-year term loan facility closing in March 2025, with the agreement to include specific provisions for replacement of equipment and maintenance requirements."

Document background
The Asset Pledge Agreement is a fundamental security document used in Indonesian financing transactions where assets are provided as collateral. It is commonly used in various financing arrangements, including bank loans, syndicated facilities, and corporate borrowings. The document must comply with Indonesian secured transaction laws, particularly Law No. 42 of 1999 on Fiducia Security and the Indonesian Civil Code. The agreement typically includes detailed descriptions of pledged assets, secured obligations, enforcement mechanisms, and mandatory provisions required by Indonesian law. It requires proper registration with the Fiduciary Registration Office and may need notarization for enforceability. The agreement is crucial for creditors to establish valid and enforceable security interests over assets while ensuring compliance with local regulatory requirements.
Suggested Sections

1. Parties: Identification of the pledgor and pledgee, including their full legal names, addresses, and registration details

2. Background: Context of the pledge agreement, including reference to any underlying facility or main agreements

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Secured Obligations: Description of the obligations being secured by the pledge

5. Creation of Pledge: Express provisions creating the pledge over the assets and the mechanics of the security

6. Perfection Requirements: Steps required to perfect the security interest, including registration requirements

7. Representations and Warranties: Pledgor's representations regarding ownership, authority, and condition of pledged assets

8. Covenants: Ongoing obligations of the pledgor regarding maintenance and preservation of the pledged assets

9. Events of Default: Circumstances constituting default under the agreement

10. Enforcement: Rights and remedies of the pledgee upon occurrence of an event of default

11. Power of Attorney: Irrevocable power of attorney granted to the pledgee for security perfection and enforcement

12. Costs and Expenses: Allocation of costs related to the creation, perfection, and enforcement of the pledge

13. Notices: Procedure for giving notices under the agreement

14. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and choice of forum for disputes

Optional Sections

1. Security Margin: Required when the agreement includes provisions for maintaining a specific ratio between secured obligations and asset value

2. Insurance: Needed when pledged assets require insurance coverage

3. Third Party Rights: Required when there are existing encumbrances or third-party interests in the pledged assets

4. Tax Provisions: Needed when specific tax implications need to be addressed

5. Further Assurance: Optional section for additional actions required to perfect or protect the security interest

6. Assignment and Transfer: Required when transfer rights need to be specifically addressed

7. Parallel Debt: Needed in syndicated facilities or when there are multiple secured parties

Suggested Schedules

1. Schedule 1 - Description of Pledged Assets: Detailed description and identification of all assets subject to the pledge

2. Schedule 2 - Form of Notice of Pledge: Template for notifying relevant parties of the pledge creation

3. Schedule 3 - Form of Power of Attorney: Standard form of power of attorney for security perfection and enforcement

4. Schedule 4 - List of Existing Security Interests: Details of any pre-existing security interests or encumbrances on the pledged assets

5. Schedule 5 - Form of Registration Application: Template for fiduciary security registration application

6. Appendix A - Copies of Corporate Approvals: Required corporate authorizations and approvals for the pledge

7. Appendix B - Asset Documents: Copies of relevant title documents or certificates for pledged assets

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions











































Clauses






























Relevant Industries

Banking and Financial Services

Manufacturing

Real Estate and Property

Mining and Resources

Infrastructure

Transportation and Logistics

Agriculture and Plantation

Technology and Telecommunications

Retail and Commerce

Energy and Utilities

Relevant Teams

Legal

Finance

Risk Management

Compliance

Credit

Treasury

Corporate Secretarial

Operations

Business Development

Investment

Relevant Roles

Legal Counsel

Finance Director

Chief Financial Officer

Risk Manager

Compliance Officer

Credit Manager

Corporate Secretary

Security Trustee

Loan Officer

Treasury Manager

Asset Manager

Operations Director

Business Development Manager

Investment 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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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