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The Home Equity Line Of Credit Agreement is a crucial banking document used in Indonesia when a property owner seeks to establish a flexible line of credit using their residential property as collateral. This agreement is designed to comply with Indonesian banking regulations, including Law No. 10 of 1998 on Banking and various OJK regulations. It's typically used when property owners need access to revolving credit for various purposes such as home improvements, education expenses, or business funding. The document details the credit facility terms, security arrangements, drawdown procedures, and repayment obligations, while ensuring compliance with Indonesian LTV ratio requirements and consumer protection regulations. The agreement becomes particularly relevant in urban areas where property values support substantial credit lines, and is structured to protect both the lender's security interests and the borrower's rights under Indonesian law.

1. Parties: Identification of the lender (bank) and borrower(s), including complete legal names, addresses, and registration details

2. Background: Context of the agreement, including property details and purpose of the credit facility

3. Definitions: Definitions of key terms used throughout the agreement, including banking, property, and credit-specific terminology

4. Facility Terms: Core terms of the HELOC including credit limit, interest rate, tenure, and purpose

5. Security Arrangements: Details of the property mortgage/security, including property description and security registration requirements

6. Drawdown Mechanics: Procedures and conditions for drawing down the credit line, including minimum amounts and notice requirements

7. Interest and Fees: Detailed provisions on interest calculation, applicable fees, and payment terms

8. Repayment Terms: Terms for minimum payments, principal reduction, and final repayment

9. Borrower Representations: Standard and specific representations regarding property ownership, capacity, and compliance

10. Borrower Covenants: Ongoing obligations including property maintenance, insurance, and financial covenants

11. Events of Default: Circumstances constituting default and consequences thereof

12. Bank's Rights and Remedies: Rights of the bank upon default, including enforcement of security

13. General Provisions: Standard clauses including notices, amendments, and governing law