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The Line of Credit Agreement is a crucial financing document used in Indonesian banking practice when a borrower requires flexible, ongoing access to credit up to a predetermined limit. This agreement is particularly valuable for businesses needing working capital or managing seasonal cash flow fluctuations. The document must comply with Indonesian banking regulations, including Law No. 7 of 1992 on Banking (as amended) and OJK regulations, while addressing specific commercial terms such as facility limits, interest rates, security requirements, and drawdown procedures. It's commonly used by both financial institutions and businesses of various sizes, providing a more flexible alternative to traditional term loans by allowing repeated drawdowns and repayments within the facility limit.

1. Parties: Identification of the lender (financial institution) and borrower, including their full legal names, addresses, and company registration details

2. Background: Context of the agreement, relationship between parties, and purpose of the credit facility

3. Definitions: Definitions of key terms used throughout the agreement, including 'Facility Limit', 'Interest Rate', 'Availability Period', and 'Event of Default'

4. The Facility: Details of the credit line including the facility limit, purpose, availability period, and revolving nature of the facility

5. Drawdown Mechanics: Procedures for requesting and making drawdowns, minimum drawdown amounts, and notice requirements

6. Interest and Fees: Interest rate calculations, payment periods, facility fees, and other charges

7. Repayment Terms: Terms for repayment including payment schedules, prepayment provisions, and account maintenance requirements

8. Conditions Precedent: Conditions that must be satisfied before the facility becomes available

9. Representations and Warranties: Standard declarations made by the borrower about their legal status, capacity, and financial condition

10. Covenants: Positive and negative obligations of the borrower during the term of the facility

11. Events of Default: Circumstances that constitute default and their consequences

12. Security: Overview of security arrangements and cross-references to security documents

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