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The Repayment Agreement is a crucial legal instrument used in Indonesian business and financial transactions when formalizing debt repayment arrangements between parties. It is commonly utilized when restructuring existing debts, converting informal lending arrangements into formal agreements, or establishing payment plans for outstanding obligations. The document must comply with Indonesian Civil Code requirements and relevant financial regulations, particularly when involving banking institutions. This agreement type is essential for both commercial and personal lending situations, providing clear terms for repayment schedules, interest calculations, and consequences of default. It includes specific provisions required under Indonesian law for enforcement, such as proper execution requirements and notarization when necessary. The agreement serves as a vital tool for debt management and financial planning, offering legal protection to both creditors and debtors.

1. Parties: Identification of the lender and borrower with complete legal names and addresses

2. Background: Context of the debt, including original loan amount, date of original loan, and reason for this repayment agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Acknowledgment of Debt: Clear statement of the outstanding amount owed and borrower's acknowledgment of the debt

5. Repayment Terms: Detailed repayment schedule, including installment amounts, payment dates, and payment methods

6. Interest: Interest rate, calculation method, and payment schedule for interest

7. Payment Mechanics: Specific details about how payments should be made, including bank account details and payment procedures

8. Events of Default: Definition of what constitutes a default and consequences of default

9. Representations and Warranties: Standard declarations by the borrower about their capacity and authority to enter into the agreement

10. Covenants: Ongoing obligations of the borrower during the repayment period

11. Notices: How formal communications between parties should be made

12. Governing Law and Jurisdiction: Confirmation of Indonesian law as governing law and jurisdiction for disputes

13. Execution: Signature blocks and execution requirements