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Agreement For Security Deposit

Agreement For Security Deposit Template for Indonesia

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Key Requirements PROMPT example:

Agreement For Security Deposit

"I need an Agreement For Security Deposit for a commercial property lease in Jakarta, Indonesia, where the tenant will provide a 6-month security deposit to be held in an interest-bearing account, with the agreement starting from March 1, 2025."

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Document background
The Agreement For Security Deposit is a crucial document used in Indonesian business and property transactions where financial security is required from one party to another. This agreement is commonly utilized in rental arrangements, service contracts, and other business relationships where a deposit serves as security against potential losses, damages, or breaches of contract. The document must comply with Indonesian Civil Code (KUH Perdata) and relevant banking regulations, making it essential for establishing clear terms regarding deposit amount, payment methods, holding conditions, and return procedures. It provides legal protection for both parties by clearly defining their rights and obligations, conditions for deposit use or forfeiture, and dispute resolution mechanisms. This agreement is particularly important in Indonesia's business environment where security deposits are common practice in various commercial transactions.
Suggested Sections

1. Parties: Identification of the deposit holder (usually landlord/business) and depositor (usually tenant/customer)

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Deposit Amount and Payment: Specification of the security deposit amount and payment terms

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

6. Holding of Deposit: Details of how and where the deposit will be held

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

8. Return of Deposit: Terms and conditions for the return of the deposit, including timeline and process

9. Interest on Deposit: Whether interest will be earned and how it will be handled

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

11. Governing Law: Specification of Indonesian law as governing law

12. Dispute Resolution: Process for resolving any disputes related to the deposit

Optional Sections

1. Bank Account Details: Specific section for bank account information where deposit will be held - used when deposit must be held in a specific account

2. Multiple Deposits: Section dealing with multiple deposits or installments - used when deposit is paid in portions

3. Insurance Requirements: Additional security requirements - used when deposit is part of broader security arrangement

4. Property Details: Description of property related to deposit - used when deposit is for rental/lease

5. Deposit Replacement: Terms for replacing deposit with alternative security - used when allowing for bank guarantees or other alternatives

6. Tax Implications: Tax treatment of deposit and interest - used when significant amounts involved

Suggested Schedules

1. Schedule 1 - Calculation of Deposit: Detailed breakdown of how deposit amount was calculated

2. Schedule 2 - Permitted Deductions: List of specific items/circumstances where deductions are permitted

3. Schedule 3 - Condition Report: For property-related deposits, details of property condition at start

4. Appendix A - Payment Details: Bank account and payment processing information

5. Appendix B - Deposit Return Procedure: Step-by-step process for deposit return

6. Appendix C - Claim Form: Standard form for making claims against the deposit

Authors

Alex Denne

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Real Estate

Property Management

Retail

Hospitality

Commercial Leasing

Banking and Financial Services

Residential Property

Office Space Management

Industrial Leasing

Service Industry

Relevant Teams

Legal

Finance

Operations

Property Management

Leasing

Risk and Compliance

Contract Administration

Real Estate

Customer Relations

Business Development

Relevant Roles

Property Manager

Leasing Manager

Real Estate Agent

Legal Counsel

Contract Administrator

Finance Manager

Operations Director

Compliance Officer

Business Development Manager

Facility Manager

Tenant Relations Manager

Risk Manager

Commercial Property Manager

Industries
Indonesian Civil Code (KUH Perdata): Fundamental law governing contracts and agreements in Indonesia, particularly Book III on Obligations and Book IV on Security Rights
Law No. 8 of 1999: Consumer Protection Law that ensures fair treatment and protection of consumer rights, including regulations on deposits and financial transactions
Law No. 7 of 2011: Currency Law which governs monetary transactions and currency use in Indonesia, relevant for deposit payments and refunds
Government Regulation No. 82 of 2012: Electronic Systems and Transactions regulation, important for electronic payment and record-keeping of security deposits
Bank Indonesia Regulation No. 17/3/PBI/2015: Regulation on payment transaction processing and fund transfers, relevant for handling security deposits through banking systems
Law No. 11 of 2020 (Omnibus Law): Recent comprehensive law that may affect business practices including property-related transactions and security deposits
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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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