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Security Deposit Contract Template for Indonesia

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Key Requirements PROMPT example:

Security Deposit Contract

"I need a Security Deposit Contract for my commercial property lease starting March 2025, where the tenant is a retail business and we require specific provisions for quarterly property inspections and potential deductions for store fixtures damage."

Document background
The Security Deposit Contract is essential for transactions in Indonesia where financial security is required from one party to another. This document is commonly used in property rentals, service agreements, and commercial leases, providing a legal framework for handling security deposits in compliance with Indonesian law. The contract details the amount of deposit, maintenance requirements, conditions for use, and return procedures, protecting both the deposit holder's and depositor's interests. It's particularly important given Indonesia's specific regulatory requirements under the Civil Code and banking regulations, ensuring proper documentation and handling of security deposits in various business contexts. The agreement helps prevent disputes by clearly outlining rights, obligations, and procedures for all parties involved.
Suggested Sections

1. Parties: Identification and details of the deposit holder (typically a landlord or business) and the depositor (typically a tenant or customer)

2. Background: Context of the security deposit arrangement and the primary relationship between the parties

3. Definitions: Key terms used throughout the agreement including 'Security Deposit', 'Property', 'Term', and other relevant definitions

4. Amount and Payment: Specification of the security deposit amount, payment method, and timing

5. Purpose of Deposit: Clear statement of what the security deposit is intended to cover and protect against

6. Maintenance of Deposit: Details of how the deposit will be held, including any interest-bearing arrangements if applicable

7. Conditions for Use: Circumstances under which the deposit holder may use or claim the deposit

8. Return of Deposit: Terms and conditions for the return of the deposit, including timing and any deductions

9. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority

10. Governing Law: Specification of Indonesian law as the governing law and relevant jurisdiction

11. Notices: Process and requirements for formal communications between parties

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Interest and Returns: Include when the deposit will be held in an interest-bearing account and specify how interest will be handled

2. Insurance Requirements: Include when specific insurance coverage is required in addition to the security deposit

3. Third-Party Rights: Include when there are guarantors or other third parties involved in the deposit arrangement

4. Dispute Resolution: Include when parties wish to specify particular dispute resolution procedures beyond standard court proceedings

5. Force Majeure: Include when parties want to address how extraordinary events affect deposit obligations

6. Electronic Transactions: Include when deposit payments and communications will be handled electronically

Suggested Schedules

1. Schedule 1 - Payment Details: Banking and payment information for the security deposit

2. Schedule 2 - Property Details: Detailed description of the property or assets covered by the security deposit (if applicable)

3. Schedule 3 - Condition Report: Initial condition assessment related to the security deposit (particularly for rental properties)

4. Appendix A - Calculation Method: Detailed methodology for calculating deductions or returns

5. Appendix B - Required Documentation: List of documents required for deposit return or claim procedures

6. Appendix C - Inspection Checklist: Standardized checklist for assessing condition and potential deductions

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

































Clauses



























Relevant Industries

Real Estate

Property Management

Retail

Hospitality

Commercial Leasing

Residential Property

Banking and Financial Services

Commercial Property

Professional Services

Industrial Leasing

Facility Management

Construction

Relevant Teams

Legal

Real Estate

Property Management

Finance

Operations

Compliance

Risk Management

Asset Management

Contract Administration

Tenant Relations

Facilities Management

Relevant Roles

Property Manager

Leasing Manager

Real Estate Agent

Legal Counsel

Contract Administrator

Financial Controller

Facility Manager

Operations Manager

Compliance Officer

Risk Manager

Asset Manager

Tenant Relations Manager

Commercial Property Manager

Legal Operations Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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