Securities Account Control Agreement Template for Indonesia

The Securities Account Control Agreement is a critical document used in Indonesian financial markets to establish and maintain control rights over securities accounts in secured financing arrangements. This agreement becomes necessary when a party needs to grant security over securities accounts while maintaining certain operational capabilities. The document, governed by Indonesian law and regulated by the OJK, creates a framework for the securities intermediary to follow the secured party's instructions regarding the account while protecting the rights of all parties involved. It is particularly important in the context of secured lending, structured finance transactions, and complex financial arrangements where securities accounts serve as collateral. The agreement must comply with various Indonesian regulations, including the Capital Markets Law and OJK regulations, while also considering international best practices for securities account control arrangements.

1. Parties: Identifies and provides details of the Account Holder, Secured Party, and Securities Intermediary

2. Background: Sets out the context of the agreement, including reference to any related security agreements and the purpose of the control arrangement

3. Definitions and Interpretation: Defines key terms used in the agreement and establishes interpretation principles

4. Account Control and Security: Establishes the secured party's control rights over the securities account and confirms the security interest

5. Securities Intermediary's Rights and Obligations: Details the duties, responsibilities, and rights of the securities intermediary in maintaining and operating the account

6. Account Holder's Rights and Restrictions: Specifies what rights the account holder retains and what actions require secured party consent

7. Instructions and Notifications: Procedures for giving instructions regarding the account and requirements for notifications between parties

8. Representations and Warranties: Standard representations and warranties from each party

9. Priority and Subordination: Establishes priority rights of the secured party and addresses any subordination arrangements

10. Fees and Expenses: Details of fees payable to the securities intermediary and allocation of expenses

11. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

12. Miscellaneous: Standard boilerplate provisions including governing law, jurisdiction, amendments, and notices