Continuing Guarantee Agreement Template for Indonesia

The Continuing Guarantee Agreement is a crucial security document used in Indonesian business and financial transactions when one party (the guarantor) agrees to secure the ongoing obligations of another party (the principal debtor) to a third party (typically a financial institution). This document type is particularly important in the Indonesian market where continuing guarantees are commonly required for various financial facilities, corporate borrowings, and commercial arrangements. The agreement must comply with Indonesian Civil Code requirements and relevant financial regulations, including OJK and Bank Indonesia guidelines. A Continuing Guarantee Agreement typically includes detailed provisions on the scope of guaranteed obligations, enforcement mechanisms, and the continuing nature of the guarantee, ensuring it remains effective for future obligations until properly terminated.

1. Parties: Identification of the Guarantor, Principal Debtor, and Beneficiary with complete legal names and addresses

2. Background: Context of the guarantee, relationship between parties, and reference to the underlying obligations being guaranteed

3. Definitions: Definitions of key terms used throughout the agreement, including 'Guaranteed Obligations', 'Security', and 'Event of Default'

4. Guarantee and Indemnity: Core provisions establishing the continuing guarantee and indemnity obligations

5. Scope of Guarantee: Detailed description of obligations covered by the guarantee, including future obligations

6. Nature of Guarantee: Specifications of the guarantee as continuing, unconditional, and irrevocable

7. Guarantor's Representations and Warranties: Guarantor's confirmations regarding capacity, authority, and financial condition

8. Payment Obligations: Terms for payment, including timing, method, and currency

9. Preservation of Rights: Beneficiary's rights preservation and ability to pursue other remedies

10. Discharge and Release: Conditions for discharge of the guarantee and release of the guarantor

11. Enforcement: Mechanisms and conditions for enforcing the guarantee

12. Notices: Requirements for formal communications between parties

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

14. Execution: Signature blocks and execution requirements