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Installment Payment Agreement
"I need an Installment Payment Agreement for the sale of manufacturing equipment worth IDR 500,000,000 to be paid in 24 monthly installments, with a 20% down payment and security interest in the equipment until full payment is received."
1. Parties: Identification of the creditor and debtor, including complete legal names, addresses, and any registration numbers
2. Background: Context of the agreement, including the original debt or purchase amount and the parties' intention to establish an installment payment arrangement
3. Definitions: Key terms used throughout the agreement, including Payment Date, Installment Amount, Total Outstanding Amount, etc.
4. Payment Terms: Details of the total amount owed, number of installments, payment frequency, and payment method
5. Payment Schedule: Specific dates when payments are due and the amount of each installment
6. Interest and Fees: Any applicable interest rates, late payment fees, or administrative charges
7. Default and Remedies: Consequences of missed payments, default scenarios, and creditor's rights in case of default
8. Representations and Warranties: Basic declarations by both parties regarding their capacity and authority to enter into the agreement
9. Notices: How formal communications between parties should be made and delivered
10. Governing Law and Jurisdiction: Confirmation of Indonesian law as governing law and jurisdiction for disputes
11. Entire Agreement: Standard clause confirming this document represents the complete agreement between parties
1. Security and Collateral: Required if the installment payment is secured by any assets or guarantees
2. Early Payment Provisions: Include when early payment options or discounts are offered
3. Insurance Requirements: Necessary when insurance is required for secured assets or payment protection
4. Third-Party Guarantor: Include when a guarantor is involved in securing the payment obligations
5. Electronic Payment Terms: Required when payments will be made through specific electronic payment systems
6. Force Majeure: Include when parties want to address circumstances that might prevent payment due to unforeseen events
7. Refinancing Options: Include when the agreement allows for potential refinancing of the remaining balance
8. Assignment Rights: Include when either party may need to transfer their rights under the agreement
1. Schedule 1 - Detailed Payment Schedule: Comprehensive table showing all payment dates, installment amounts, and running balance
2. Schedule 2 - Payment Methods: Details of approved payment methods, account numbers, and payment processing procedures
3. Schedule 3 - Collateral Description: Detailed description of any assets provided as security, including registration numbers and conditions
4. Appendix A - Required Documents: List of supporting documents provided by the debtor (e.g., ID, proof of income, bank statements)
5. Appendix B - Late Payment Fee Structure: Detailed breakdown of applicable fees and charges for late or missed payments
6. Appendix C - Direct Debit Authorization: If applicable, the direct debit authorization form and terms
Authors
Financial Services
Retail
Real Estate
Automotive
Manufacturing
Construction
Education
Healthcare
Technology
Consumer Goods
Professional Services
Telecommunications
Legal
Finance
Credit Control
Collections
Risk Management
Compliance
Sales
Treasury
Accounts Receivable
Contract Administration
Financial Controller
Credit Manager
Collections Manager
Legal Counsel
Finance Director
Accounts Receivable Manager
Risk Manager
Compliance Officer
Contract Administrator
Treasury Manager
Sales Manager
Business Development Manager
Chief Financial Officer
Credit Analyst
Financial Planning Manager
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