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Assignment Of Proceeds Agreement Template for Indonesia

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Key Requirements PROMPT example:

Assignment Of Proceeds Agreement

"I need an Assignment of Proceeds Agreement under Indonesian law for assigning future rental income from a commercial property in Jakarta to a local bank as security for a business loan, with the assignment to commence from March 1, 2025."

Document background
An Assignment Of Proceeds Agreement is a crucial document used in Indonesian financing and security arrangements where one party (Assignor) transfers their rights to receive certain payments or proceeds to another party (Assignee). This document is commonly utilized in project finance, loan security arrangements, or receivables financing transactions. The agreement must comply with Indonesian law requirements, particularly the provisions of the Civil Code regarding assignment of rights (cessie) and relevant Financial Services Authority (OJK) regulations. It includes detailed provisions about the assigned proceeds, payment mechanisms, notice requirements, and enforcement rights. The document is particularly important in structured finance transactions and can serve either as a primary security document or as supplementary security in larger financing arrangements. The agreement needs to consider Indonesian law requirements for perfection of the assignment, including proper notification to the underlying debtor.
Suggested Sections

1. Parties: Identifies the Assignor, Assignee, and often the Debtor/Paying Party

2. Background: Sets out the context of the underlying transaction and the purpose of the assignment

3. Definitions: Defines key terms used throughout the agreement

4. Assignment: Core provision detailing the assignment of proceeds, its scope and effective date

5. Payment Instructions: Specifies how and where assigned proceeds should be paid

6. Representations and Warranties: Standard representations regarding authority, validity of proceeds, no prior assignment, etc.

7. Covenants: Ongoing obligations of the Assignor regarding the proceeds and notification requirements

8. Events of Default: Circumstances constituting default and consequences

9. Notices: Communication procedures between parties

10. Governing Law and Jurisdiction: Confirms Indonesian law governance and jurisdiction for disputes

11. General Provisions: Standard boilerplate clauses including amendments, waiver, severability

Optional Sections

1. Security Provisions: Required if the assignment serves as security for other obligations

2. Currency Provisions: Needed if proceeds are in foreign currency or multiple currencies are involved

3. Tax Provisions: Required if tax implications need specific addressing

4. Step-In Rights: Optional provisions allowing Assignee to take direct action in certain circumstances

5. Insurance: Required if assigned proceeds relate to insurance policies or if insurance requirements exist

6. Regulatory Compliance: Needed if the assignment involves regulated industries or parties

7. Powers of Attorney: Optional section granting specific powers to the Assignee

Suggested Schedules

1. Schedule 1 - Details of Assigned Proceeds: Detailed description of the proceeds being assigned, including amounts, payment dates, and source

2. Schedule 2 - Form of Notice of Assignment: Template notice to be sent to the Debtor/Paying Party

3. Schedule 3 - Payment Instructions: Detailed payment mechanics and bank account information

4. Schedule 4 - Form of Acknowledgment: Template acknowledgment to be signed by the Debtor/Paying Party

5. Schedule 5 - Existing Security Interests: List of any existing security interests or encumbrances over the proceeds

6. Schedule 6 - Required Authorizations: List of governmental or regulatory approvals required

7. Appendix A - Underlying Agreement Excerpts: Relevant excerpts from the agreement generating the proceeds

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

Infrastructure

Energy and Resources

Real Estate and Construction

Manufacturing

Telecommunications

Oil and Gas

Mining

Agriculture

Trade and Export

Shipping and Maritime

Power Generation

Relevant Teams

Legal

Finance

Treasury

Credit and Risk

Commercial

Compliance

Project Finance

Transaction Management

Account Management

Securities and Trust Services

Relevant Roles

Legal Counsel

Finance Director

Treasury Manager

Credit Manager

Contract Manager

Risk Manager

Commercial Director

Chief Financial Officer

Project Finance Manager

Security Trustee

Compliance Officer

Account Manager

Transaction 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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