Document background
The Guarantee and Indemnity Agreement is a crucial security document in Indonesian business transactions, commonly used when additional security is required for financial obligations or commercial arrangements. This document is particularly important in the context of Indonesian banking and finance transactions, where it serves as a key credit support instrument. The agreement combines both guarantee and indemnity obligations, providing the beneficiary with multiple routes to enforce their rights under Indonesian law. It is typically used in conjunction with facility agreements, loan documents, or other primary obligations, and must comply with specific requirements under the Indonesian Civil Code and relevant banking regulations. The document includes detailed provisions on the scope of the guarantee, enforcement mechanisms, and the guarantor's obligations, while ensuring compliance with Indonesian regulatory requirements regarding guarantees and security arrangements.
