Guarantor Contract Template for Indonesia

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Key Requirements PROMPT example:

Guarantor Contract

"I need a Guarantor Contract under Indonesian law where PT Sejahtera Mining (as Guarantor) guarantees a USD 5 million bank loan from Bank Central Asia to its subsidiary PT Sejahtera Operations (as Principal Debtor), with the guarantee period running from March 1, 2025, to December 31, 2025."

Document background
A Guarantor Contract is a crucial legal instrument in Indonesian business and financial transactions, providing security for creditors and facilitating access to credit and business opportunities. This document is commonly used when a principal debtor requires additional security to obtain financing or enter into significant commercial arrangements. The contract must comply with Indonesian law, particularly the Civil Code (KUHPerdata) and relevant banking regulations. The Guarantor Contract details the scope of guaranteed obligations, enforcement mechanisms, and the guarantor's rights and obligations. It's particularly important in corporate financing, property transactions, and commercial dealings where additional security is required beyond the principal debtor's commitments. The document typically includes provisions for Indonesian law compliance, local execution requirements, and specific provisions for guarantee enforcement under the Indonesian legal system.
Suggested Sections

1. Parties: Identifies and provides full details of the Principal Debtor, Creditor, and Guarantor

2. Background: Explains the context of the underlying debt/obligation and the reason for the guarantee

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Guarantee: Clearly defines the obligations being guaranteed and the extent of the guarantor's liability

5. Nature of Guarantee: Specifies whether it's a continuing guarantee, an absolute guarantee, or other type

6. Guarantor's Obligations: Details the specific obligations and commitments of the guarantor

7. Payment Terms: Specifies when and how the guarantor must make payments upon default by the principal debtor

8. Representations and Warranties: Statements of fact and assurances given by the guarantor

9. Duration and Validity: Specifies the term of the guarantee and conditions for its validity

10. Events of Default: Lists circumstances that trigger the guarantee obligations

11. Enforcement: Procedures for enforcing the guarantee

12. Governing Law and Jurisdiction: Confirms Indonesian law applies and specifies jurisdiction for disputes

13. Notices: Details how formal communications between parties should be made

14. Execution: Signature blocks and execution requirements

Optional Sections

1. Security: Include when the guarantee is backed by specific assets or collateral

2. Multiple Guarantors: Include when there is more than one guarantor, defining joint and several liability

3. Corporate Authority: Include when the guarantor is a corporation, detailing corporate approvals

4. Assignment: Include when rights under the guarantee may need to be transferred

5. Currency Provisions: Include for international transactions involving multiple currencies

6. Tax Provisions: Include when tax implications need to be addressed specifically

7. Financial Covenants: Include when ongoing financial requirements are imposed on the guarantor

8. Subordination: Include when the guarantee needs to be ranked relative to other obligations

Suggested Schedules

1. Schedule 1 - Guaranteed Obligations: Detailed description of the underlying obligations being guaranteed

2. Schedule 2 - Security Details: Details of any security or collateral provided (if applicable)

3. Schedule 3 - Payment Schedule: Schedule of payments under the underlying obligation

4. Schedule 4 - Form of Demand: Standard form for making a demand under the guarantee

5. Appendix A - Corporate Authorizations: Copies of relevant corporate approvals and authorizations

6. Appendix B - Supporting Documents: Copies of underlying loan agreement or other relevant documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Banking and Financial Services

Real Estate and Property Development

Manufacturing

Construction

Infrastructure

Trading and Commerce

Retail

Agriculture

Mining and Resources

Transportation and Logistics

Relevant Teams

Legal

Finance

Risk Management

Treasury

Compliance

Credit Administration

Corporate Secretariat

Commercial Operations

Business Development

Contract Management

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Risk Manager

Credit Manager

Corporate Secretary

Treasury Manager

Compliance Officer

Commercial Director

Business Development Manager

Contract Administrator

Legal Manager

Banking Relationship Manager

Security Trustee

Corporate Finance Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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