Bill Of Sale Loan Agreement Template for Indonesia

The Bill of Sale Loan Agreement is a crucial document used in Indonesian financing transactions where a lender provides funding against specific asset security while allowing the borrower to maintain possession and use of the asset. This document type is particularly relevant when financing valuable movable assets such as vehicles, machinery, or equipment. The agreement must comply with Indonesian Civil Code requirements and the Law on Fiduciary Security, including mandatory registration with the Fiduciary Registry Office. It contains detailed provisions on loan terms, security arrangements, borrower obligations, and enforcement rights, making it suitable for both commercial and consumer lending situations. The document's structure ensures protection for the lender while providing clear guidelines for the borrower's continued use and maintenance of the secured asset.

1. Parties: Identifies and provides full details of the Lender and Borrower, including their legal names, addresses, and any registration numbers

2. Background: Sets out the context of the agreement, including the Borrower's request for the loan and the Lender's agreement to provide it against security

3. Definitions: Defines key terms used throughout the agreement to ensure clarity and prevent misinterpretation

4. Loan Amount and Purpose: Specifies the principal amount of the loan and its intended use

5. Security Details: Describes the asset(s) being used as security, including full identification details and current value

6. Repayment Terms: Details the repayment schedule, interest rate, and payment methods

7. Security Interest: Establishes the creation of the security interest and its registration requirements under Indonesian law

8. Representations and Warranties: States the parties' assertions regarding their capacity, authority, and ownership of the security

9. Borrower's Covenants: Sets out the Borrower's ongoing obligations regarding the secured asset and loan repayment

10. Events of Default: Lists circumstances that constitute default and trigger enforcement rights

11. Enforcement Rights: Details the Lender's rights and remedies upon default, including asset seizure procedures

12. Notices: Specifies how formal communications between parties should be made

13. Governing Law and Jurisdiction: Confirms Indonesian law as governing law and specifies jurisdiction for disputes

14. Execution: Formal signing section including witness requirements and notarization provisions