Document background
A Loan Agreement with Security is a fundamental document in secured financing transactions under Indonesian law. It is typically used when a lender requires security over the borrower's assets as collateral for a loan, providing the lender with preferential rights over secured assets in case of default. The agreement must comply with Indonesian civil law principles and specific regulations governing security interests, including registration requirements with relevant authorities. This document is essential for both domestic and cross-border lending transactions, requiring careful consideration of Indonesian banking regulations, security perfection requirements, and enforcement procedures. The agreement typically includes detailed provisions on the security package, which may comprise various types of security interests recognized under Indonesian law, such as fiduciary security, land mortgages, pledges, or hypothecs.
