Pledge And Security Agreement Template for Indonesia

The Pledge and Security Agreement serves as a crucial legal instrument in Indonesian financial and commercial transactions, providing a framework for securing obligations through the pledge of various assets. This document is essential when a party (Pledgor) needs to provide security over their assets to another party (Pledgee) as collateral for financial obligations or other commitments. The agreement must comply with Indonesian law, particularly Law No. 42 of 1999 on Fiduciary Security and related regulations, which govern the creation, registration, and enforcement of security interests. It is commonly used in lending transactions, corporate financing, project finance, and other commercial arrangements where secured obligations are required. The document includes detailed provisions on the secured assets, registration requirements, maintenance obligations, enforcement rights, and remedies available under Indonesian law.

1. Parties: Identifies and defines the Pledgor/Grantor and the Pledgee/Secured Party with their complete legal details

2. Background: Sets out the context of the underlying obligation and the purpose of the security arrangement

3. Definitions: Defines key terms used throughout the agreement, including specific Indonesian legal terminology

4. Grant of Security Interest: Establishes the pledge and security interest over the collateral

5. Description of Secured Obligations: Details the obligations being secured, including principal debt, interest, and other amounts

6. Representations and Warranties: Pledgor's declarations regarding ownership, authority, and status of collateral

7. Covenants: Ongoing obligations of the Pledgor regarding maintenance and preservation of collateral

8. Perfection Requirements: Requirements for registration and filing under Indonesian law, including fiduciary registration

9. Rights and Obligations: Detailed rights and responsibilities of both parties during the security period

10. Events of Default: Circumstances constituting default and triggering enforcement rights

11. Enforcement Rights: Secured party's rights and remedies upon default, compliant with Indonesian enforcement procedures

12. Power of Attorney: Irrevocable power of attorney for the Secured Party to perfect and enforce the security

13. Governing Law and Jurisdiction: Specifies Indonesian law as governing law and jurisdiction for disputes

14. Notices: Communication procedures between parties

15. Miscellaneous: Standard boilerplate provisions including severability, amendments, and counterparts