Credit Application Agreement Template for Indonesia

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Key Requirements PROMPT example:

Credit Application Agreement

"I need a Credit Application Agreement under Indonesian law for a medium-sized manufacturing company seeking working capital financing, with specific provisions for machinery collateral and multiple corporate guarantors."

Document background
The Credit Application Agreement serves as the foundational document for initiating credit relationships in Indonesia, used when individuals or businesses seek to obtain credit facilities from financial institutions. This document is essential in the Indonesian banking sector and must comply with regulations set by Bank Indonesia and the Financial Services Authority (OJK). It captures crucial information about the applicant, proposed credit facility, and terms of assessment while ensuring transparency and fair treatment as required by Indonesian banking laws. The agreement includes comprehensive details about the application process, required documentation, credit assessment criteria, and obligations of all parties involved. It's particularly important as it forms the basis for the lender's credit assessment and the potential establishment of a credit facility, while protecting both parties' interests under Indonesian law.
Suggested Sections

1. Parties: Identification of the financial institution and the credit applicant, including complete legal names, addresses, and registration details

2. Background: Context of the credit application, purpose of the facility, and relationship between the parties

3. Definitions: Detailed definitions of terms used throughout the agreement, including financial and technical terms

4. Credit Facility Details: Specific details of the requested credit facility, including amount, purpose, and type of facility

5. Application Process: Steps and requirements for the credit application, including documentation requirements

6. Representations and Warranties: Statements of fact and assurances made by the applicant regarding their financial condition, legal status, and ability to repay

7. Terms and Conditions: General terms governing the credit facility application and eventual facility if approved

8. Fees and Charges: Details of all applicable fees, charges, and costs associated with the application and credit facility

9. Information Disclosure: Provisions regarding the collection, use, and disclosure of applicant information

10. Declarations: Formal statements by the applicant confirming the truthfulness of provided information

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

Optional Sections

1. Corporate Authority: Required for corporate applicants, detailing corporate approvals and authority to apply for credit

2. Guarantor Details: Include when a guarantor is required for the credit facility

3. Insurance Requirements: Needed when specific insurance coverage is required as part of the credit facility

4. Security Arrangements: Required when the credit facility is to be secured by specific assets or collateral

5. Electronic Communication Consent: Include when the application process involves electronic communications and notifications

6. Joint Applicant Provisions: Required when there are multiple applicants applying jointly for the credit facility

7. Special Industry Requirements: Include specific provisions for regulated industries or special business sectors

Suggested Schedules

1. Schedule 1 - Application Form: Standard credit application form with required fields and information

2. Schedule 2 - Required Documents Checklist: List of all required supporting documents for the application

3. Schedule 3 - Fee Schedule: Detailed breakdown of all applicable fees and charges

4. Schedule 4 - Credit Assessment Criteria: Overview of the criteria used for evaluating the credit application

5. Appendix A - KYC Requirements: Details of Know Your Customer requirements and documentation

6. Appendix B - Data Privacy Notice: Detailed privacy notice and data protection provisions

7. Appendix C - Terms of Security (if applicable): Detailed terms regarding any security or collateral requirements

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

Relevant legal definitions
Relevant Industries

Banking

Financial Services

Insurance

Real Estate

Manufacturing

Retail

Construction

Agriculture

Technology

Healthcare

Transportation

Mining

Hospitality

Education

Small and Medium Enterprises

Relevant Teams

Legal

Compliance

Risk Management

Credit Operations

Customer Service

Financial Control

Corporate Banking

Retail Banking

Documentation

Credit Administration

Due Diligence

Operations

Account Management

Internal Audit

Regulatory Affairs

Relevant Roles

Credit Officer

Risk Manager

Compliance Officer

Legal Counsel

Banking Operations Manager

Relationship Manager

Credit Analyst

Branch Manager

Financial Controller

Corporate Secretary

Chief Financial Officer

Chief Risk Officer

Credit Administration Manager

Due Diligence Officer

Customer Service Manager

Industries
Indonesian Civil Code (KUHPerdata): Provides the fundamental legal framework for contracts, including requirements for valid agreements, rights and obligations of parties, and general contract principles
Law No. 10 of 1998 on Banking: The primary banking law in Indonesia that regulates banking institutions and their activities, including credit provision and lending practices
Law No. 21 of 2011 on Financial Services Authority (OJK): Establishes the regulatory framework for financial services supervision and includes specific regulations for credit providers
OJK Regulation No. 1/POJK.07/2013: Regulates consumer protection in the financial services sector, including requirements for transparency and fair treatment in credit applications
Law No. 11 of 2008 on Electronic Information and Transactions: Relevant for online credit applications and electronic documentation, governing digital signatures and electronic transactions
Law No. 7 of 1992 on Banking (as amended): Contains provisions on credit arrangements and banking operations that affect credit application processes
Bank Indonesia Regulation No. 14/2/PBI/2012: Provides guidelines on credit assessment and scoring procedures for financial institutions
Law No. 8 of 1999 on Consumer Protection: Establishes general consumer protection principles that apply to financial services and credit agreements
OJK Regulation No. 77/POJK.01/2016: Regulates peer-to-peer lending services and online credit providers, relevant for digital credit applications
Law No. 40 of 2007 on Limited Liability Companies: Relevant when the credit applicant is a corporate entity, governing corporate borrowing and authority
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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