Line Of Credit Loan Agreement Template for Indonesia

The Line of Credit Loan Agreement is a crucial financing document used when a borrower requires flexible access to funds over an extended period. This agreement, governed by Indonesian law and compliant with regulations from Bank Indonesia and OJK, establishes a maximum credit limit that can be drawn down, repaid, and redrawn as needed. It's particularly useful for businesses managing working capital, seasonal fluctuations, or ongoing operational needs. The document includes essential provisions for security, interest calculations, representations and warranties, and events of default, all structured within the Indonesian legal framework. It's commonly used by banks and financial institutions lending to both corporate and individual borrowers, requiring careful consideration of Indonesian banking regulations, civil code requirements, and financial services laws.

1. Parties: Identification of the lender and borrower with complete legal names and addresses

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. The Facility: Details of the credit facility including amount, purpose, and availability period

5. Conditions Precedent: Conditions that must be satisfied before the facility becomes available

6. Drawdown: Procedures and requirements for drawing down the credit facility

7. Interest and Fees: Interest rate calculations, fees, and payment terms

8. Repayment: Terms and conditions for repayment of drawn amounts

9. Representations and Warranties: Statements of fact and assurances given by the borrower

10. Covenants: Positive and negative obligations of the borrower during the facility period

11. Events of Default: Circumstances that constitute default and consequences thereof

12. Changes to Parties: Rules regarding assignment and transfer of rights and obligations

13. Notices: Communication procedures between parties

14. General Provisions: Boilerplate clauses including governing law, jurisdiction, and severability