Global Collateral Account Control Agreement Template for Indonesia

A Global Collateral Account Control Agreement is a specialized legal document that allows secured parties to establish and maintain control over bank accounts or investment accounts serving as collateral in financing transactions. When you're involved in cross-border secured financing arrangements involving Indonesian parties or assets, this agreement becomes essential for protecting lender interests while enabling borrower operations under Indonesian banking and securities law.

When do you need this document?

You need this agreement when entering syndicated loan facilities where Indonesian accounts serve as collateral security, establishing escrow arrangements for international project financing involving Indonesian entities, or securing trade finance facilities with Indonesian account-based collateral. It's also required when creating security packages for acquisition financing where Indonesian subsidiaries maintain operational accounts, or when implementing cash management systems in cross-border corporate restructuring involving Indonesian assets. The document proves crucial in situations where multiple jurisdictions are involved and Indonesian law governs the account relationships.

Key legal considerations

The agreement must carefully address perfection requirements under Indonesian secured transaction law, including compliance with fiduciary security provisions under Law No. 42 of 1999. You should ensure proper notification procedures to account banks and clear definition of control mechanisms that don't interfere with legitimate business operations. The document must specify trigger events that activate full control rights, establish priority arrangements among multiple secured parties, and address currency conversion issues for foreign exchange accounts. Consider including provisions for Indonesian legal counsel opinions, account bank acknowledgments under Indonesian banking law, and compliance with OJK regulations regarding asset quality and collateral management.

Legal requirements in Indonesia

Under Indonesian law, account control agreements must comply with Banking Law No. 10 of 1998 provisions governing banking services and account relationships. The agreement should align with OJK Regulation No. 40/POJK.03/2019 requirements for collateral management and valuation procedures. Foreign exchange accounts must comply with Law No. 24 of 1999 on Foreign Exchange Flow, particularly regarding international fund transfers and currency conversion procedures. The Indonesian Civil Code governs contract formation and enforcement, requiring clear terms regarding obligations and security rights. You must ensure the agreement includes proper Indonesian law governing clauses, dispute resolution mechanisms recognizing Indonesian court jurisdiction or arbitration procedures, and compliance certificates from Indonesian legal counsel confirming enforceability under local law.