Document background
The Private Mortgage Note is a crucial document in Indonesian private lending transactions, typically used when individuals or private institutions provide loans secured by real property. This document combines elements of a promissory note with security arrangements under Indonesian law, particularly adhering to Law No. 4 of 1996 on Mortgage Rights (Hak Tanggungan) and the Indonesian Civil Code. It's essential for private lending transactions where traditional bank financing may not be suitable or preferred. The document must be executed before an Indonesian notary and registered with relevant property authorities to create enforceable security interests. It includes comprehensive details about the loan terms, property description, payment obligations, default provisions, and enforcement mechanisms, all structured to comply with Indonesian regulatory requirements and market practices.
