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Third Party Payment Contract Template for Indonesia

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Key Requirements PROMPT example:

Third Party Payment Contract

"I need a Third Party Payment Contract under Indonesian law for a real estate development project where a foreign investment company will make quarterly payments of USD 2 million on behalf of the local developer to various contractors, starting March 2025."

Document background
The Third Party Payment Contract is essential in commercial arrangements where one party assumes payment obligations on behalf of another. This document type is commonly used in Indonesian business transactions where direct payment between the principal debtor and creditor is not preferred or practical. It must comply with Indonesian Civil Code requirements for contract formation and Bank Indonesia regulations governing payment systems (particularly Regulation No. 22/23/PBI/2020). The agreement typically includes comprehensive payment terms, security arrangements, regulatory compliance provisions, and risk allocation mechanisms. It's particularly relevant in scenarios involving trade finance, property transactions, or ongoing commercial arrangements where third-party payment structures provide business advantages or risk mitigation. The document must address both the commercial requirements of the parties and the regulatory framework governing payment services in Indonesia.
Suggested Sections

1. Parties: Identification of all parties: the principal debtor, the third-party payor, and the creditor/beneficiary

2. Background: Context of the agreement, relationship between parties, and basis for the third-party payment arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including payment-related terminology

4. Payment Obligations: Details of the payment obligations, including amount, currency, and payment schedule

5. Payment Mechanism: Specific procedures and methods for making payments, including electronic transfer details

6. Conditions Precedent: Conditions that must be satisfied before payment obligations become effective

7. Representations and Warranties: Key statements of fact and assurances from each party

8. Regulatory Compliance: Compliance obligations with Indonesian payment systems and banking regulations

9. Default and Remedies: Events of default and corresponding remedies available to parties

10. Liability and Indemnification: Allocation of risks and responsibilities between parties

11. Term and Termination: Duration of the agreement and circumstances for termination

12. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms

13. Miscellaneous: Standard boilerplate provisions including notices, amendments, and severability

Optional Sections

1. Security Arrangements: Include when additional security or guarantees are required for the payment obligations

2. Foreign Exchange Provisions: Required when payments involve foreign currency transactions

3. Anti-Money Laundering Compliance: Detailed AML provisions when dealing with large payment amounts or high-risk transactions

4. Force Majeure: Include when parties want specific provisions for handling payment disruptions due to extraordinary events

5. Confidentiality: Include when sensitive financial or commercial information is involved

6. Step-In Rights: Include when creditor requires rights to step in and take over payment arrangements in specific circumstances

7. Electronic Payment Systems: Include detailed provisions when specific electronic payment platforms or systems are being used

Suggested Schedules

1. Payment Schedule: Detailed schedule of payment amounts, dates, and frequencies

2. Bank Account Details: Specified bank account information for all parties

3. Service Level Agreement: Performance standards for payment processing and related services

4. Compliance Documentation: Required regulatory compliance documents and certifications

5. Security Documentation: Details of any security arrangements or guarantees

6. Required Notices and Forms: Templates for payment notices and standard forms

7. Contact Details: List of authorized representatives and contact information for all parties

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

Banking and Financial Services

Real Estate

International Trade

Manufacturing

Retail

Construction

Infrastructure

Energy

Telecommunications

E-commerce

Insurance

Logistics

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Commercial Operations

Accounts Payable

Credit Control

Banking Operations

Corporate Finance

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Payments Manager

Legal Counsel

Compliance Officer

Contract Manager

Risk Manager

Commercial Director

Account Manager

Financial Controller

Banking Relationship Manager

Corporate Finance Manager

Credit 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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