tiktok���˰�

The Collateral Sharing Agreement is essential in complex financing transactions where multiple creditors hold security interests over the same collateral under Indonesian law. This document becomes necessary when different lenders or groups of lenders need to establish their respective rights, priorities, and responsibilities regarding shared security. It is particularly relevant in syndicated lending, project finance, or restructuring scenarios where assets are secured in favor of multiple creditors. The agreement must comply with Indonesian security and banking regulations, including requirements under the Civil Code, Fiducia Security Law, and OJK regulations. It typically includes detailed provisions for security agent appointment, enforcement procedures, proceeds distribution, and inter-creditor arrangements, ensuring all parties have clarity on their rights and obligations under Indonesian law.

1. Parties: Identification of all parties to the agreement, including security agent (if any) and all creditors participating in the shared collateral arrangement

2. Background: Context of the agreement, including reference to the underlying credit facilities and security arrangements being shared

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Appointment of Security Agent: Terms of appointment, powers, and duties of the security agent who will hold and manage the shared collateral on behalf of the creditors

5. Sharing and Priority Arrangements: Core provisions detailing how the collateral is shared, ranking of security interests, and priority rights among creditors

6. Administration of Shared Security: Procedures for managing the shared collateral, including monitoring, maintenance, and reporting requirements

7. Enforcement: Procedures and conditions for enforcing security interests, including voting mechanisms for collective enforcement actions

8. Distribution of Proceeds: Rules for allocating and distributing proceeds from enforcement or realization of shared collateral

9. Representations and Warranties: Standard representations and warranties from each party regarding their capacity and authority

10. Costs and Expenses: Allocation of costs related to the administration and enforcement of shared security

11. Amendments and Waivers: Procedures for modifying the agreement or waiving rights

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

13. Notices: Communication procedures and contact details for all parties

14. Counterparts: Provision allowing execution in multiple counterparts