The Guarantee of Lease Form is essential in Indonesian property transactions where additional security is required for lease agreements. It is commonly used when landlords seek extra assurance beyond the tenant's commitments, particularly in high-value commercial leases or when dealing with new or unestablished tenants. The document, governed by Indonesian law, specifically the Civil Code (KUHPerdata) and property regulations, establishes a three-party relationship between lessor, lessee, and guarantor. It outlines the guarantor's obligations to step in if the tenant defaults, the conditions for enforcement, and the extent of the guarantee. This form is crucial for risk management in property leasing and provides clarity on the guarantor's obligations and the lessor's rights of enforcement.
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1. Parties: Identifies the Lessor (property owner), Lessee (tenant), and Guarantor, including their full legal names, addresses, and any relevant registration numbers
2. Background: Brief context explaining the lease agreement being guaranteed and the purpose of this guarantee
3. Definitions: Defines key terms used throughout the document, including 'Lease Agreement', 'Guaranteed Obligations', and 'Event of Default'
4. Scope of Guarantee: Specifies exactly what obligations of the Lessee are being guaranteed, including rent payments, property maintenance, and other lease obligations
5. Guarantor's Obligations: Details the specific commitments and responsibilities of the guarantor, including payment obligations and timing
6. Duration of Guarantee: Specifies the term of the guarantee, typically aligned with the lease period plus any extension provisions
7. Enforcement: Explains when and how the guarantee can be enforced, including notice requirements and payment procedures
8. Representations and Warranties: Guarantor's confirmations regarding their capacity and authority to provide the guarantee
9. Indemnification: Guarantor's commitment to indemnify the Lessor against losses related to Lessee's default
10. Governing Law and Jurisdiction: Confirms Indonesian law as governing law and specifies jurisdiction for dispute resolution
11. Notices: Specifies how and where formal notices should be delivered to all parties
12. Execution: Signature blocks and execution requirements for all parties
1. Security Deposit: Include when the guarantor is required to provide a security deposit in addition to the guarantee
2. Multiple Guarantors: Include when there is more than one guarantor, specifying joint and several liability
3. Corporate Guarantee Provisions: Include when the guarantor is a corporate entity, including corporate authority requirements
4. Release Conditions: Include when there are specific conditions under which the guarantor can be released from obligations
5. Assignment: Include when either party needs the right to assign the guarantee to other parties
6. Language Requirements: Include when the document needs to be in both Indonesian and English languages
1. Schedule 1 - Reference Lease Agreement: Copy or key details of the lease agreement being guaranteed
2. Schedule 2 - Guaranteed Amounts: Detailed breakdown of the financial obligations being guaranteed
3. Schedule 3 - Property Details: Description and details of the leased property
4. Appendix A - Form of Demand: Standard format for making a demand under the guarantee
5. Appendix B - Corporate Documents: Required corporate authorizations if guarantor is a company
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