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Collateral Security Agreement
"I need a Collateral Security Agreement for PT Indo Manufacturing as security provider, granting security over its machinery and equipment inventory to secure a USD 5 million loan from Bank Central Asia, with the security to be registered by March 2025."
1. Parties: Identification of the security provider (grantor) and the security recipient (secured party)
2. Background: Context of the security arrangement, reference to the underlying facility or principal agreement
3. Definitions and Interpretation: Key terms used in the agreement, including specific Indonesian law terms
4. Grant of Security Interest: Core provision creating the security interest over the collateral
5. Secured Obligations: Definition and scope of the obligations being secured
6. Representations and Warranties: Grantor's confirmations regarding ownership, authority, and status of collateral
7. Covenants: Ongoing obligations regarding maintenance and preservation of collateral
8. Registration and Perfection: Requirements for registration with the Fiducia Registry Office and other perfection steps
9. Enforcement: Rights and procedures for enforcement upon default
10. Power of Attorney: Irrevocable power to manage and dispose of collateral upon default
11. Notices: Communication procedures between parties
12. Governing Law and Jurisdiction: Confirmation of Indonesian law application and dispute resolution
1. Insurance: Required when collateral needs to be insured
2. Third Party Rights: Include when there are existing encumbrances or third-party interests
3. Currency Provisions: Required when secured obligations are in foreign currency
4. Tax Provisions: Include when specific tax implications need to be addressed
5. Further Assurance: Optional section for additional security or documentation requirements
6. Assignment and Transfer: Include when transfer of rights needs to be specifically regulated
7. Multiple Security Providers: Required when there are multiple grantors of security
8. Priority Arrangements: Include when there are multiple secured parties or ranking issues
1. Schedule 1 - Description of Collateral: Detailed description and identification of all secured assets
2. Schedule 2 - Form of Fiducia Security Registration: Template for fiducia registration documentation
3. Schedule 3 - Existing Security Interests: List of any pre-existing security interests or encumbrances
4. Schedule 4 - Form of Power of Attorney: Template for required powers of attorney
5. Schedule 5 - Secured Party Details: Complete details of secured party for registration purposes
6. Schedule 6 - Security Provider Details: Complete details of security provider including corporate authorizations
7. Appendix A - Principal Agreement: Copy or summary of the underlying facility or principal agreement
8. Appendix B - Insurance Policies: Copies of relevant insurance policies covering the collateral
Authors
Banking
Financial Services
Real Estate
Manufacturing
Trading and Distribution
Agriculture
Mining
Infrastructure
Retail
Technology
Transportation and Logistics
Energy
Legal
Finance
Risk Management
Compliance
Credit Administration
Corporate Secretarial
Treasury
Operations
Legal Counsel
Finance Director
Credit Risk Manager
Compliance Officer
Corporate Secretary
Security Documentation Officer
Relationship Manager
Credit Analyst
Treasury Manager
Chief Financial Officer
Risk Officer
Loan Officer
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