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General Security Agreement Template for Indonesia

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Key Requirements PROMPT example:

General Security Agreement

"I need a General Security Agreement under Indonesian law for my manufacturing company to secure a USD 5 million loan from Bank Central Asia, with the security covering our machinery, inventory, and receivables, to be completed by March 2025."

Document background
A General Security Agreement is a fundamental document used in Indonesian secured lending transactions to create and perfect security interests over a grantor's assets. This document is essential when a party (typically a borrower) needs to provide security over its assets to secure financial obligations. The agreement must comply with Indonesian law requirements, particularly the Law on Fiducia Security, which governs security interests over movable assets. It includes crucial details about the secured obligations, collateral description, registration requirements, and enforcement mechanisms. The document is typically used in conjunction with facility agreements or loan documents and requires registration with the Fiducia Registration Office to be fully effective. Given Indonesia's specific requirements for security documentation, including mandatory notarization and registration procedures, the agreement must be carefully structured to ensure enforceability and compliance with local regulations.
Suggested Sections

1. Parties: Identifies and provides full details of the Secured Party and the Grantor

2. Background: Sets out the context of the security arrangement and references any related agreements such as facility agreements

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

4. Grant of Security Interest: Creates and defines the scope of the security interest over the collateral

5. Description of Secured Obligations: Details the obligations being secured, including principal debt, interest, and other amounts

6. Representations and Warranties: Grantor's confirmations regarding ownership, authority, and status of collateral

7. Grantor's Covenants: Ongoing obligations of the Grantor regarding maintenance and use of collateral

8. Events of Default: Specifies circumstances that constitute default under the agreement

9. Enforcement Rights: Details the Secured Party's rights and remedies upon default

10. Registration and Perfection: Requirements for registering the security interest with relevant authorities

11. Power of Attorney: Grants Secured Party authority to act on Grantor's behalf in specified circumstances

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

13. Governing Law and Jurisdiction: Confirms Indonesian law as governing law and specifies jurisdiction for disputes

14. Execution: Formal signing section meeting Indonesian law requirements

Optional Sections

1. Further Advances: Include when the security may secure future advances or facilities

2. Insurance Requirements: Include when specific insurance obligations are needed for valuable collateral

3. Third Party Rights: Include when third parties may have interests in the collateral

4. Currency Provisions: Include when secured obligations involve multiple currencies

5. Tax Provisions: Include when specific tax considerations affect the security arrangement

6. Assignment and Transfer: Include when parties anticipate potential transfers of rights

7. Priority Arrangements: Include when multiple security interests exist over same collateral

8. Cross-Default Provisions: Include when security is part of larger financing arrangement

Suggested Schedules

1. Schedule 1 - Description of Collateral: Detailed description and categorization of all assets subject to security

2. Schedule 2 - Form of Fiducia Registration Statement: Template for mandatory fiducia registration documentation

3. Schedule 3 - Existing Security Interests: List of any pre-existing security interests affecting the collateral

4. Schedule 4 - Locations of Collateral: Details of where collateral is kept or registered

5. Schedule 5 - Form of Power of Attorney: Standard form of power of attorney required under Indonesian law

6. Appendix A - Perfection Requirements: Checklist of steps required to perfect the security interest

7. Appendix B - Required Approvals: List of regulatory or third party approvals needed

8. Appendix C - Registration Procedures: Detailed procedures for registering security interest with authorities

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

Financial Services

Manufacturing

Real Estate

Trading and Distribution

Mining

Agriculture

Technology

Infrastructure

Retail

Transportation and Logistics

Energy

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Secretarial

Credit Administration

Security Documentation

Corporate Finance

Transaction Management

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Secretary

Risk Manager

Treasury Manager

Credit Manager

Compliance Officer

Banking Relationship Manager

Security Documentation Officer

Corporate Finance Manager

Legal Director

Loan Officer

Transaction Manager

Asset 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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