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Financial Responsibility Agreement

Financial Responsibility Agreement Template for Indonesia

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Key Requirements PROMPT example:

Financial Responsibility Agreement

"I need a Financial Responsibility Agreement between our manufacturing company and its Indonesian subsidiary, establishing monthly financial reporting requirements and payment obligations for shared services, with the agreement to commence from March 1, 2025."

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Document background
The Financial Responsibility Agreement is commonly used in Indonesian business transactions where clear delineation of financial obligations is essential. This document serves multiple purposes, including establishing payment obligations, defining financial reporting requirements, and setting out consequences for default. It is particularly relevant when businesses or individuals need to formalize financial commitments, whether in lending relationships, joint ventures, or corporate group arrangements. The agreement must comply with Indonesian financial regulations, including OJK requirements and the Civil Code. It's designed to provide legal certainty and protection for all parties while ensuring transparency in financial obligations. Common scenarios for its use include corporate lending, investment arrangements, joint venture agreements, and parent-subsidiary financial relationships.
Suggested Sections

1. Parties: Identifies all parties to the agreement, including their legal names, addresses, and registration details

2. Background: Explains the context and purpose of the financial responsibility agreement

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Financial Responsibility: Details the specific financial obligations and responsibilities being agreed to

5. Payment Terms and Conditions: Specifies payment amounts, schedules, and methods

6. Default and Consequences: Outlines what constitutes default and the resulting consequences

7. Representations and Warranties: Statements of fact and assurances made by each party

8. Reporting Requirements: Details any financial reporting obligations and deadlines

9. Term and Termination: Specifies the duration of the agreement and conditions for termination

10. Governing Law and Dispute Resolution: Specifies Indonesian law as governing law and outlines dispute resolution procedures

11. Notices: Specifies how formal communications between parties should be made

12. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

Optional Sections

1. Guarantees: Include when there is a third-party guarantor for the financial obligations

2. Collateral: Include when specific assets are being pledged as security

3. Insurance Requirements: Include when specific insurance coverage is required to secure financial obligations

4. Force Majeure: Include when parties want to address circumstances beyond their control affecting financial obligations

5. Assignment and Transfer: Include when rights or obligations may need to be transferred to other parties

6. Confidentiality: Include when financial information needs to be kept confidential

Suggested Schedules

1. Schedule A - Payment Schedule: Detailed breakdown of payment amounts and due dates

2. Schedule B - Financial Reporting Template: Standard format for required financial reports

3. Schedule C - Collateral Details: Description and valuation of any pledged collateral

4. Appendix 1 - Required Documents: List of supporting documents required for verification of financial status

5. Appendix 2 - Contact Details: Complete contact information for all relevant parties and representatives

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

alex.den.21@genieai.co
Relevant legal definitions























Clauses























Relevant Industries

Banking

Financial Services

Insurance

Investment Management

Real Estate

Construction

Manufacturing

Retail

Education

Healthcare

Relevant Teams

Legal

Finance

Compliance

Risk Management

Treasury

Corporate Affairs

Credit Control

Business Development

Internal Audit

Corporate Governance

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Compliance Officer

Risk Manager

Treasury Manager

Corporate Secretary

Financial Controller

Credit Manager

Account Manager

Investment Officer

Business Development 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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