Document background
The Personal Guarantee Settlement Agreement is utilized when parties seek to resolve obligations arising from a personal guarantee in Indonesia. This document becomes necessary when a guarantor wishes to settle their obligations under an existing personal guarantee, either through a lump sum payment or structured payment plan. It is particularly relevant in situations involving corporate borrowing where directors or shareholders have provided personal guarantees, or in cases where business relationships require personal guarantees from key stakeholders. The agreement must comply with Indonesian Civil Code requirements and typically includes detailed provisions on settlement amounts, payment terms, release conditions, and the consequences of default. This document is crucial for both creditors seeking to secure settlement terms and guarantors looking to resolve their guarantee obligations in a legally binding manner.
