Cash Collateral Agreement Template for Indonesia

The Cash Collateral Agreement serves as a critical legal instrument in Indonesian financial transactions where cash is provided as security for obligations. This document type is commonly used in banking relationships, trading arrangements, and financial services transactions where one party requires liquid security from another. The agreement must comply with Indonesian regulatory requirements, including Bank Indonesia regulations, OJK requirements, and secured transactions laws. It typically details the amount of collateral required, maintenance obligations, interest arrangements, and enforcement mechanisms. The document is particularly important in the Indonesian context due to specific local law requirements regarding security interests and financial collateral arrangements.

1. Parties: Identification of the collateral provider and collateral taker, including their legal details and representatives

2. Background: Context of the agreement, reference to any underlying obligations or master agreements

3. Definitions: Definitions of key terms used throughout the agreement, including 'Cash Collateral', 'Secured Obligations', 'Event of Default'

4. Grant of Security Interest: Legal provisions establishing the security interest over the cash collateral

5. Collateral Requirements: Specification of collateral amount, currency, maintenance requirements, and top-up obligations

6. Deposit and Withdrawal: Procedures and conditions for depositing and withdrawing cash collateral

7. Interest and Returns: Treatment of interest earned on cash collateral and distribution of returns

8. Rights and Obligations: Detailed responsibilities of both parties regarding the maintenance and management of collateral

9. Events of Default: Circumstances constituting default and their consequences

10. Enforcement: Rights and procedures for enforcing security interest upon default

11. Representations and Warranties: Legal statements and assurances from both parties

12. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes

13. Notices: Communication procedures and contact details

14. Miscellaneous: Standard boilerplate provisions including amendments, severability, and entire agreement