Deposit Control Agreement Template for Indonesia

The Deposit Control Agreement is a crucial document in secured financing transactions under Indonesian law, typically used when deposit accounts serve as collateral for loans or other financial obligations. This agreement is essential for creating and perfecting a security interest over deposit accounts, providing the secured party with control and access rights while protecting the interests of all parties involved. The document becomes necessary when a lender requires security over deposit accounts as part of a larger financing arrangement, ensuring compliance with Indonesian banking regulations and secured transactions law. It establishes clear protocols for account operation, defines the rights and obligations of the depositor, bank, and secured party, and includes specific provisions for enforcement in accordance with Indonesian legal requirements.

1. Parties: Identifies the three key parties: Depositor, Deposit Bank, and Secured Party/Beneficiary

2. Background: Sets out the context of the agreement, including reference to any underlying credit facility or security arrangement

3. Definitions: Defines key terms used throughout the agreement, including Account, Control, Instructions, and Security Interest

4. Account Control: Establishes the secured party's control over the deposit account and the nature of that control

5. Bank's Rights and Obligations: Details the deposit bank's responsibilities, including following instructions and maintaining the account

6. Security Interest: Confirms the grant and perfection of security interest in the deposit account

7. Instructions and Notifications: Specifies procedures for giving instructions regarding the account and required notifications

8. Representations and Warranties: Contains standard representations from all parties regarding authority, binding effect, and no conflicts

9. Fees and Expenses: Addresses the bank's fees for maintaining the account and complying with the agreement

10. Indemnification: Sets forth indemnification obligations of the parties

11. Term and Termination: Specifies the duration of the agreement and circumstances for termination

12. Governing Law and Jurisdiction: Specifies Indonesian law as governing law and determines jurisdiction for disputes

13. Miscellaneous: Contains standard boilerplate provisions including notices, amendments, and counterparts