Debt Assignment Agreement Template for Indonesia

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Key Requirements PROMPT example:

Debt Assignment Agreement

"I need a Debt Assignment Agreement under Indonesian law for transferring corporate loan receivables worth IDR 5 billion from PT Bank Central Asia Tbk to a private equity firm, with the transfer scheduled for March 2025 and including provisions for existing collateral transfer."

Document background
The Debt Assignment Agreement is a crucial document used in Indonesian business and financial transactions when one party wishes to transfer its rights as a creditor to another party. This document is particularly relevant in debt restructuring, portfolio sales, or when companies need to manage their receivables more effectively. Under Indonesian law, specifically the Civil Code (KUH Perdata), such assignments must meet certain requirements, including mandatory notification to the debtor. The agreement comprehensively covers the terms of transfer, including the assignment price, payment terms, representations about the debt's validity, and post-assignment obligations. It's commonly used by financial institutions, investment companies, and businesses dealing with debt trading or restructuring, and must be carefully drafted to ensure compliance with Indonesian regulatory requirements and civil law principles.
Suggested Sections

1. Parties: Identification of the Assignor (current creditor), Assignee (new creditor), and acknowledgment of the Original Debtor

2. Background: Details of the original debt arrangement, reason for assignment, and context of the transaction

3. Definitions: Definitions of key terms including Original Debt, Assignment Date, Outstanding Amount, and other relevant terms

4. Assignment: Core provision detailing the transfer of rights from Assignor to Assignee, including the scope of rights being transferred

5. Assignment Price and Payment: Details of the consideration for the assignment and payment mechanisms

6. Effective Date and Completion: Specifications about when the assignment takes effect and conditions for completion

7. Representations and Warranties: Statements by the Assignor regarding ownership, validity, and status of the debt being assigned

8. Notification to Debtor: Provisions regarding the mandatory notification to the Original Debtor under Indonesian law

9. Rights and Obligations Post-Assignment: Ongoing responsibilities of each party after the assignment is complete

10. Further Assurance: Obligations to execute additional documents or take actions necessary to perfect the assignment

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

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Security Assignment: Required if any security interests or collateral are being transferred along with the debt

2. Tax Provisions: Include when the assignment has significant tax implications or involves cross-border elements

3. Currency Provisions: Required when the debt is denominated in foreign currency or involves international payments

4. Regulatory Compliance: Include when either party is a regulated entity or the assignment requires regulatory approvals

5. Confidentiality: Include when parties wish to keep the terms of the assignment confidential

6. Power of Attorney: Include when specific authorizations are needed for post-assignment actions

7. Costs and Expenses: Include when there are significant costs associated with the assignment that need to be allocated

Suggested Schedules

1. Schedule 1 - Details of Original Debt: Complete details of the debt being assigned, including original agreement, outstanding amount, and payment history

2. Schedule 2 - Form of Notice to Debtor: Template for the mandatory notice to be sent to the Original Debtor

3. Schedule 3 - Copies of Original Debt Documentation: Copies of all relevant original debt documents and amendments

4. Schedule 4 - Payment Details: Bank account and payment instruction details for the assignment price

5. Appendix A - Power of Attorney (if applicable): Format of power of attorney for specific post-assignment actions

6. Appendix B - Related Security Documents: List and copies of any security documents related to the debt being assigned

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

Investment Management

Debt Collection & Recovery

Corporate Finance

Real Estate & Property

Manufacturing

Infrastructure

Trading & Commerce

Insurance

Private Equity

Asset Management

Retail

Relevant Teams

Legal

Finance

Treasury

Credit Management

Debt Collection

Risk Management

Compliance

Corporate Affairs

Investment

Portfolio Management

Accounts Receivable

Special Assets

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Finance Manager

Credit Manager

Debt Collection Manager

Investment Manager

Portfolio Manager

Risk Manager

Treasury Manager

Account Manager

Legal Director

Compliance Officer

Corporate Secretary

Financial Controller

Restructuring Officer

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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