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Bank Credit Guarantee Template for Indonesia

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Key Requirements PROMPT example:

Bank Credit Guarantee

"I need a Bank Credit Guarantee agreement under Indonesian law where PT Global Manufacturing (as Guarantor) will guarantee a USD 5 million credit facility provided by Bank Mandiri to PT Supply Chain Solutions (as Principal Debtor), with the guarantee period starting March 1, 2025."

Document background
A Bank Credit Guarantee agreement is a crucial financial instrument in Indonesian banking practice, typically used when a bank requires additional security for a credit facility. This document is essential when a third party (guarantor) agrees to secure the obligations of a borrower under a credit facility. The guarantee must comply with Indonesian banking regulations, including Law No. 10 of 1998 on Banking and relevant Bank Indonesia regulations. The document specifies the guarantee amount, enforcement procedures, and obligations of all parties. It requires careful consideration of Indonesian security and guarantee laws, often involving notarization and registration requirements. The Bank Credit Guarantee agreement is particularly important in corporate financing, project finance, and other commercial lending situations where additional credit support is required by the lending bank.
Suggested Sections

1. Parties: Identification of the Guarantor, Bank, and Principal Debtor with their complete legal details

2. Background: Context of the guarantee, including reference to the underlying credit facility and relationship between parties

3. Definitions: Definitions of key terms used throughout the agreement, including technical banking and legal terms

4. Guarantee: Core terms of the guarantee, including scope, amount, and duration

5. Representations and Warranties: Statements of fact and assurances from the Guarantor regarding their capacity and authority

6. Guarantor's Obligations: Specific obligations and undertakings of the Guarantor

7. Payment Terms: Terms and conditions for guarantee payments, including timing and method

8. Default Events: Circumstances constituting default under the guarantee

9. Enforcement: Procedures and rights for enforcing the guarantee

10. Indemnification: Guarantor's obligations to indemnify the Bank

11. Notices: Communication procedures between parties

12. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes

13. Execution: Signature blocks and execution formalities

Optional Sections

1. Security Provisions: Required when the guarantee is secured by specific assets or collateral

2. Corporate Authority: Needed when the Guarantor is a corporate entity, detailing corporate approvals

3. Financial Covenants: Include when specific financial conditions must be maintained by the Guarantor

4. Co-Guarantors: Required when multiple guarantors are involved

5. Currency Provisions: Necessary for cross-border transactions or when guarantee is in foreign currency

6. Tax Provisions: Include when specific tax considerations affect the guarantee arrangement

7. Assignment and Transfer: Include when rights under the guarantee may need to be transferred

8. Language: Required for dual-language agreements, specifying prevailing language

Suggested Schedules

1. Schedule 1 - Credit Facility Details: Details of the underlying credit facility being guaranteed

2. Schedule 2 - Guarantee Amount and Calculation: Detailed breakdown of the guarantee amount and any calculation methods

3. Schedule 3 - Security Details: Description of any security or collateral provided

4. Schedule 4 - Form of Demand: Standard form for making a demand under the guarantee

5. Schedule 5 - Conditions Precedent: List of documents and conditions required before guarantee becomes effective

6. Appendix A - Corporate Authorizations: Copies of relevant corporate approvals and authorizations

7. Appendix B - Specimen Signatures: Authorized signatures for all parties

8. Appendix C - Payment Instructions: Bank account and payment details for all parties

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

Construction

Manufacturing

Real Estate

Infrastructure

Energy

Mining

Agriculture

Retail

Technology

Transportation and Logistics

Healthcare

Education

Relevant Teams

Legal

Finance

Risk Management

Compliance

Corporate Banking

Credit Administration

Treasury

Operations

Documentation

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Secretary

Risk Manager

Credit Officer

Relationship Manager

Compliance Officer

Treasury Manager

Banking Operations Manager

Credit Risk Analyst

Legal Manager

Corporate Banking Manager

Business Development Manager

Document Controller

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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