Deed Of Assignment Of Rental Proceeds Template for Indonesia

The Deed of Assignment of Rental Proceeds is a crucial document in Indonesian property and finance transactions, commonly used when property owners need to monetize their rental income streams or provide security for financing arrangements. This deed enables the legal transfer of the right to receive rental payments from the assignor (typically the property owner) to the assignee (usually a financial institution). It's particularly relevant in project financing, property development, and investment scenarios where rental income serves as a key component of the security package. The document must comply with Indonesian civil law requirements, including proper notarization where required, and typically includes comprehensive details about the underlying property, lease arrangements, payment mechanisms, and enforcement rights. The deed is essential for protecting the assignee's interests while ensuring proper notification to tenants and maintaining the smooth flow of rental payments.

1. Parties: Identification of the Assignor (current recipient of rental proceeds), the Assignee (party receiving the rights to the rental proceeds), and any other relevant parties

2. Background: Context of the assignment, including details of the underlying lease/rental agreement and the reason for the assignment

3. Definitions: Definitions of key terms used throughout the deed, including 'Rental Proceeds', 'Property', 'Lease Agreement', etc.

4. Assignment: Core provision detailing the absolute assignment of the rental proceeds from Assignor to Assignee

5. Consideration: Details of the consideration being paid for the assignment

6. Effective Date: Specification of when the assignment takes effect

7. Assignor's Representations and Warranties: Warranties regarding ownership of rights, no prior assignments, authority to assign, etc.

8. Assignor's Covenants: Ongoing obligations of the Assignor, including cooperation with collection and non-interference

9. Notice and Instructions: Requirements for notifying the tenant(s) and providing payment instructions

10. Powers of Attorney: Irrevocable powers granted to the Assignee to collect rental proceeds and enforce rights

11. Further Assurance: Obligation to execute further documents and take additional steps if needed

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

13. Execution: Formal execution provisions compliant with Indonesian notarial requirements