Credit Assignment Agreement Template for Indonesia

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Key Requirements PROMPT example:

Credit Assignment Agreement

"I need a Credit Assignment Agreement for the transfer of a corporate loan portfolio from Bank Mandiri to HSBC Indonesia, to be completed by March 2025, with specific provisions for OJK approval and cross-border reporting requirements."

Document background
The Credit Assignment Agreement is a crucial document used in Indonesian financial and business transactions when one party wishes to transfer its credit rights to another party. This document is particularly relevant in scenarios such as debt portfolio sales, corporate restructuring, or financial institution portfolio management. The agreement must comply with Indonesian law, specifically the Civil Code (KUHPerdata) and OJK regulations, and includes detailed provisions about the credit being assigned, purchase price, warranties, and completion requirements. It requires careful consideration of local regulatory requirements, including mandatory notification to debtors and potential registration with relevant authorities. The document is commonly used by banks, financial institutions, and corporations operating in Indonesia, and may require additional provisions when involving foreign parties or cross-border elements.
Suggested Sections

1. Parties: Identification of the Assignor and Assignee, including their full legal names, registration numbers, addresses, and authorized representatives

2. Background: Context of the credit assignment, including details of the original credit agreement and the reason for the assignment

3. Definitions: Definitions of key terms used throughout the agreement, including 'Credit', 'Assignment Date', 'Original Credit Agreement', etc.

4. Assignment: Core provision detailing the transfer of rights from Assignor to Assignee, including the specific credit being assigned

5. Purchase Price: The amount to be paid for the assignment and payment terms

6. Completion: Details of when and how the assignment will be completed, including conditions precedent

7. Representations and Warranties: Standard warranties from both parties, especially regarding the Assignor's right to assign the credit

8. Assignor's Obligations: Obligations of the Assignor including delivery of documents and cooperation in the transfer

9. Notice and Registration: Requirements for notifying the original debtor and any registration requirements

10. Costs and Taxes: Allocation of costs, expenses, and tax obligations related to the assignment

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

12. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, amendments, etc.

Optional Sections

1. Security Assignment: Required when any security interests are being transferred along with the credit

2. Foreign Currency Provisions: Required when the credit or purchase price involves foreign currency

3. Regulatory Compliance: Specific section needed when either party is a regulated entity like a bank

4. Third Party Consents: Required when the assignment requires consent from other parties

5. Data Protection: Required when personal data is involved in the assigned credit

6. Step-In Rights: Optional provisions for the Assignee's rights to step into ongoing proceedings

7. Further Assurance: Optional detailed provisions about future cooperation and documentation

Suggested Schedules

1. Schedule 1 - Details of the Assigned Credit: Detailed description of the credit being assigned, including amount, interest rate, maturity, and payment history

2. Schedule 2 - Original Credit Agreement: Copy or summary of the original credit agreement being assigned

3. Schedule 3 - Form of Notice to Debtor: Template of the notice to be sent to the original debtor regarding the assignment

4. Schedule 4 - Completion Requirements: Checklist of documents and actions required for completion

5. Schedule 5 - Security Documents: List and copies of any security documents related to the assigned credit

6. Appendix A - Power of Attorney: Form of power of attorney for registration and other formal requirements

7. Appendix B - Corporate Authorizations: Copies of relevant corporate authorizations and powers of attorney

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

Asset Management

Real Estate

Infrastructure

Manufacturing

Trading and Distribution

Private Equity

Debt Collection

Corporate Finance

Investment Management

Relevant Teams

Legal

Finance

Treasury

Credit Management

Risk Management

Compliance

Corporate Secretariat

Investment

Portfolio Management

Collections

Transaction Management

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Credit Manager

Portfolio Manager

Treasury Manager

Risk Manager

Compliance Officer

Investment Manager

Asset Manager

Debt Collection Manager

Transaction Manager

Corporate Secretary

Financial Controller

Industries
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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