Document background
A Security Sharing Agreement is essential in complex financing arrangements where multiple creditors hold security interests over the same assets. This document type is particularly relevant in Indonesia where security interests are subject to specific registration and enforcement requirements under various regulations including the Indonesian Civil Code, OJK regulations, and specific security laws. The agreement establishes clear mechanisms for sharing and enforcing security interests, ranking of creditors, distribution of enforcement proceeds, and collective decision-making processes. It addresses unique aspects of Indonesian security law such as fiduciary security registration requirements, land mortgage provisions, and specific enforcement procedures. The document is commonly used in project finance, syndicated lending, and other multi-creditor arrangements where coordinated security management is crucial.
