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The Business Loan Agreement serves as the primary documentation for commercial lending transactions in Indonesia, establishing the legal relationship between financial institutions and business borrowers. This document is essential when a business seeks formal financing for operations, expansion, or specific projects. It must comply with Indonesian banking regulations, particularly Law No. 10 of 1998 on Banking and the Indonesian Civil Code, while incorporating necessary safeguards for both lender and borrower. The agreement typically includes comprehensive details about loan facilities, security arrangements, financial covenants, and compliance requirements, making it suitable for various business financing needs from working capital to asset acquisition.

1. Parties: Identification of the lender and borrower, including complete legal names, registration numbers, and addresses

2. Background: Context of the loan agreement, including purpose of the loan and brief description of the business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of the loan amount, currency, and permitted use of funds

5. Interest Rate and Calculations: Details of interest rate, calculation method, and payment periods

6. Drawdown and Disbursement: Terms and conditions for disbursement of the loan

7. Repayment Terms: Schedule and method of repayment, including principal and interest payments

8. Security and Collateral: Details of any assets or guarantees provided as security for the loan

9. Representations and Warranties: Statements of fact and assurances from the borrower regarding their business and ability to repay

10. Borrower's Covenants: Ongoing obligations of the borrower during the loan term

11. Events of Default: Circumstances that constitute default and consequences thereof

12. Remedies: Lender's rights and remedies in case of default

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

14. Notices: Process and requirements for formal communications between parties

15. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, and amendments