Collateral Trust Agreement Template for Indonesia

The Collateral Trust Agreement serves as a crucial instrument in Indonesian secured financing transactions, providing a framework for the secure holding and management of collateral assets. It is particularly vital in complex financing arrangements where multiple creditors are involved or when specialized asset management is required. The document ensures compliance with Indonesian security and fiduciary laws while protecting the interests of all parties through detailed collateral management provisions, clear trustee obligations, and enforcement mechanisms. This agreement type is commonly used in project financing, syndicated lending, and structured finance transactions where assets need to be held in trust for the benefit of lenders or other beneficiaries. The structure must adhere to specific requirements under Indonesian law, including the Law on Fiduciary Security and relevant OJK regulations.

1. Parties: Identification of the Trustor/Grantor, Trustee, and Beneficiaries

2. Background: Context of the agreement, underlying obligations, and purpose of the trust arrangement

3. Definitions and Interpretation: Comprehensive definitions of terms used and rules of interpretation

4. Appointment of Trustee: Formal appointment and acceptance of the trustee role

5. Declaration of Trust: Establishment of the trust and transfer of collateral to trustee

6. Collateral Description and Scope: Detailed description of assets comprising the collateral

7. Rights and Obligations of Trustee: Trustee's duties, powers, and responsibilities in managing collateral

8. Rights and Obligations of Trustor: Ongoing obligations of the trustor regarding the collateral

9. Beneficiary Rights: Rights of beneficiaries and their relationship to the trust

10. Representations and Warranties: Standard and specific representations by all parties

11. Events of Default: Circumstances constituting default and consequences

12. Enforcement and Remedies: Procedures for enforcing security and exercising remedies

13. Fees and Expenses: Trustee compensation and allocation of costs

14. Indemnification: Protection of trustee and indemnification obligations

15. Term and Termination: Duration of agreement and termination circumstances

16. Governing Law and Jurisdiction: Choice of Indonesian law and dispute resolution provisions

17. Miscellaneous: Standard boilerplate provisions including notices, amendments, etc.