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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."
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
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
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
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
Legal
Finance
Risk Management
Compliance
Credit
Treasury
Corporate Secretarial
Operations
Business Development
Investment
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
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