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Loan Settlement Agreement
"I need a Loan Settlement Agreement under Indonesian law for a corporate borrower settling a secured term loan of IDR 5 billion with our bank through a 15% discounted lump sum payment, with settlement completion required by March 2025."
1. Parties: Identification of the lender and borrower, including their complete legal names, addresses, and authorized representatives
2. Background: Recitals detailing the original loan agreement, current outstanding amount, and parties' intention to settle
3. Definitions: Definitions of key terms used throughout the agreement
4. Acknowledgment of Debt: Clear statement of the outstanding loan amount and acknowledgment by the borrower
5. Settlement Terms: Detailed terms of settlement including settlement amount, payment method, and timeline
6. Payment Mechanism: Specific details about how and where payments will be made, including bank account details
7. Release and Discharge: Provisions regarding mutual release of claims upon completion of settlement obligations
8. Representations and Warranties: Standard representations by both parties regarding authority and capacity to enter into agreement
9. Default Provisions: Consequences of failing to comply with settlement terms
10. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes
11. Notices: Process for delivering formal notices between parties
12. Entire Agreement: Confirmation that this agreement supersedes all prior agreements regarding the settlement
13. Execution: Signature blocks and execution requirements
1. Guarantor Provisions: Required when the original loan involved guarantors who need to be party to the settlement
2. Collateral Release: Needed when the original loan was secured by collateral that needs to be released
3. Tax Provisions: Detailed tax arrangements when settlement involves significant tax implications
4. Confidentiality: When parties require specific confidentiality obligations regarding the settlement terms
5. Corporate Authorizations: Required when either party is a corporation needing specific board approvals
6. Installment Schedule: When settlement involves payments in installments rather than lump sum
7. Force Majeure: When parties want specific provisions for unforeseen circumstances affecting settlement
8. Assignment: When rights under the settlement agreement may need to be assignable
1. Schedule 1 - Original Loan Details: Copy or summary of original loan agreement and amendments
2. Schedule 2 - Calculation of Settlement Amount: Detailed breakdown of the settlement amount including principal, interest, and any discounts
3. Schedule 3 - Payment Schedule: If applicable, detailed schedule of installment payments
4. Schedule 4 - Release Documents: Forms of release documents to be executed upon completion
5. Schedule 5 - Collateral Details: If applicable, list and description of collateral to be released
6. Appendix A - Corporate Authorizations: Copies of relevant corporate approvals and authorizations
7. Appendix B - Power of Attorney: If applicable, powers of attorney for signing or implementing the agreement
Authors
Original Loan Agreement
Settlement Amount
Outstanding Amount
Business Day
Completion Date
Default Event
Effective Date
Existing Security
Final Settlement Date
Lender
Borrower
Guarantor
Interest
Original Principal Amount
Payment Date
Relevant Documents
Release Documents
Security
Settlement Payment
Working Days
Bank Indonesia
Force Majeure Event
Governmental Authority
Indonesian Rupiah
Material Adverse Effect
Parties
Permitted Assignment
Release
Representatives
Security Documents
Settlement Conditions
Taxes
Transaction Documents
Default Interest
Discharge Date
Encumbrance
Financial Indebtedness
Law
Notice
Payment Account
Secured Obligations
Settlement Installment
Stamp Duty
Termination Event
Recitals
Definitions
Interpretation
Acknowledgment of Debt
Settlement Terms
Payment Obligations
Payment Mechanics
Conditions Precedent
Representations and Warranties
Release and Discharge
Security Release
Default
Remedies
Force Majeure
Termination
Governing Law
Dispute Resolution
Notices
Assignment
Confidentiality
Costs and Expenses
Stamp Duty
Tax
Severability
Amendment
Waiver
Counterparts
Time of Essence
Further Assurance
Entire Agreement
Authority and Capacity
Survival
Third Party Rights
Banking & Financial Services
Legal Services
Corporate Finance
Real Estate
Manufacturing
Retail
Construction
Infrastructure
Agriculture
Mining
Technology
Healthcare
Legal
Finance
Treasury
Credit Risk
Compliance
Corporate Secretariat
Debt Recovery
Account Management
Banking Operations
Corporate Finance
Chief Financial Officer
Finance Director
Legal Counsel
Corporate Lawyer
Loan Officer
Credit Manager
Risk Manager
Treasury Manager
Account Manager
Debt Recovery Specialist
Compliance Officer
Financial Controller
Banking Relationship Manager
Corporate Secretary
Restructuring Manager
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