Document background
A Loan Assignment Agreement is essential in Indonesian banking and finance transactions where loan rights and obligations need to be transferred between parties. This document is commonly used in loan portfolio sales, debt trading, restructuring scenarios, or when lenders wish to exit their loan positions. The agreement must be carefully structured to comply with Indonesian law requirements, particularly the Civil Code provisions on cessie and Financial Services Authority (OJK) regulations. It typically includes detailed provisions on the assignment mechanics, purchase price, representations about the loan status, and necessary regulatory approvals. The document becomes particularly important in scenarios involving regulated financial institutions, cross-border transactions, or when the underlying loan is secured. Special attention must be paid to notification requirements and, in some cases, obtaining borrower consent as required under Indonesian law.
