Loan Agreement With Notary Template for Indonesia

The Loan Agreement With Notary is a crucial legal instrument in Indonesian financing transactions, particularly where substantial loan amounts or significant security interests are involved. This document type is commonly used when parties require the highest form of legal certainty offered under Indonesian law through notarial execution. The agreement must be prepared and executed before an Indonesian notary public, creating an authentic deed that carries special evidentiary weight in legal proceedings. It is especially relevant for corporate financing, property acquisition, project finance, and other significant lending transactions where the involvement of a notary is either required by law or preferred for enhanced security. The document incorporates all essential elements of a loan agreement while meeting the formal requirements of Indonesian notarial law, including proper witnessing, reading, and execution procedures as prescribed by Law No. 2 of 2014.

1. Parties: Identification of the lender and borrower with complete legal details as required by Indonesian notarial law

2. Background: Recitals explaining the context of the loan and the parties' intentions

3. Definitions: Definitions of key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of the loan amount, currency, and permitted use of funds

5. Disbursement: Terms and conditions for disbursement of the loan

6. Interest: Interest rate, calculation method, and payment schedule

7. Repayment Terms: Principal repayment schedule, prepayment provisions, and payment mechanics

8. Security: Description of collateral and security arrangements

9. Representations and Warranties: Standard declarations by the borrower about their legal and financial status

10. Covenants: Positive and negative obligations of the borrower during the loan term

11. Events of Default: Circumstances constituting default and consequences

12. Taxes: Provisions regarding tax obligations and withholding requirements

13. Notarial Statements: Mandatory notarial declarations and witness statements

14. Governing Law and Jurisdiction: Confirmation of Indonesian law application and jurisdictional matters

15. Closing Language: Standard notarial closing formalities required under Indonesian law