Stock Borrowing Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for the temporary transfer of securities from a lender to a borrower. The agreement complies with OJK regulations and IDX rules, detailing the obligations of both parties, collateral requirements, fee structures, and operational procedures. It includes specific provisions for the Indonesian market context, including regulatory compliance requirements, settlement procedures through KSEI, and applicable tax considerations under Indonesian law. The document serves as a master agreement that can be used for multiple borrowing transactions.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Get template free
Upload to review

Your data doesn't train Genie's AI

You keep IP ownership of your docs

4.6 / 5
4.6 / 5
4.8 / 5

What is a Stock Borrowing Agreement?

The Stock Borrowing Agreement is a crucial document in Indonesia's capital markets, used when one party needs to temporarily borrow securities from another, typically for purposes such as short selling, avoiding settlement failures, or supporting market-making activities. The agreement must comply with Law No. 8 of 1995 on Capital Markets and OJK Regulation No. 45/POJK.04/2020 on Securities Borrowing and Lending. It outlines the complete framework for the borrowing arrangement, including delivery mechanisms, collateral requirements, rights and obligations of parties, default provisions, and settlement procedures through KSEI. The document is essential for financial institutions operating in Indonesia's securities markets and must incorporate specific local regulatory requirements while maintaining international market standards.

What sections should be included in a Stock Borrowing Agreement?

1. Parties: Identification of the lender and borrower, including their complete legal names, registration numbers, and authorized representatives

2. Background: Context of the agreement, including the lender's ownership of securities and borrower's purpose for borrowing

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Loan of Securities: Core provisions governing the borrowing arrangement, including scope, purpose, and basic mechanics

5. Delivery and Return: Procedures and timing for the delivery of borrowed securities and their return

6. Collateral Requirements: Details of required collateral, including type, value, maintenance, and margin calls

7. Fees and Payments: Borrowing fees, payment schedules, and calculation methods

8. Rights and Obligations: Specific duties and responsibilities of each party during the loan period

9. Representations and Warranties: Standard declarations about the parties' capacity, authority, and securities ownership

10. Events of Default: Circumstances constituting default and consequences thereof

11. Termination: Conditions and procedures for ending the agreement

12. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes

13. Notices: Communication procedures and contact details for formal notices

What sections are optional to include in a Stock Borrowing Agreement?

1. Market Disruption: Provisions dealing with market disruptions or trading suspensions - included when trading in volatile markets

2. Tax Provisions: Detailed tax handling procedures - included when cross-border elements exist or specific tax arrangements are needed

3. Corporate Actions: Handling of dividends, rights issues, and other corporate actions - included for equities lending

4. Agent Provisions: Required when a lending or borrowing agent is involved in the transaction

5. Electronic Trading Platform: Included when the borrowing arrangement is conducted through a specific trading platform

6. Foreign Investment Provisions: Required when the arrangement involves foreign investors subject to Indonesian investment restrictions

What schedules should be included in a Stock Borrowing Agreement?

1. Schedule 1 - Eligible Securities: List of securities eligible for borrowing under the agreement

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, charges, and calculation methodologies

3. Schedule 3 - Form of Loan Confirmation: Standard form for confirming individual loan transactions

4. Schedule 4 - Collateral Requirements: Detailed specifications for acceptable collateral and haircuts

5. Schedule 5 - Operating Procedures: Detailed procedures for loan initiation, maintenance, and return

6. Appendix A - Standard Settlement Instructions: Banking and securities account details for settlements

7. Appendix B - Authorized Persons: List of authorized signatories and traders for each party

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Security Agreement

Cost

Free to use

Find the exact document you need

Personal Information Confidentiality Agreement

Indonesian law-compliant confidentiality agreement for protecting personal information under the 2022 PDP Law framework.

Download

Security Deposit Agreement

An Indonesian law-governed agreement establishing terms for managing and returning a security deposit between parties, including deposit amount, usage conditions, and return requirements.

Download

Pledge Security Agreement

An Indonesian law-governed security agreement creating a pledge over movable assets while allowing the pledgor to retain possession, subject to Law No. 42 of 1999 on Fiducia Security.

Download

Stock Escrow Agreement

An Indonesian law-governed agreement establishing terms for holding shares in escrow, detailing deposit, release conditions, and party obligations.

Download

Omnibus Loan And Security Agreement

An Indonesian law-governed agreement combining multiple loan facilities and security arrangements in a single integrated document, compliant with Indonesian banking and security regulations.

Download

Security Deposit Contract

An Indonesian law-governed agreement establishing terms for managing and returning security deposits, ensuring protection for both deposit holders and depositors.

Download

Convertible Bond Subscription Agreement

An Indonesian law-governed agreement detailing terms for convertible bond subscription, including investment terms, conversion rights, and regulatory compliance requirements.

Download

Deposit Pledge Agreement

An Indonesian law-governed agreement creating a pledge over bank deposits as security for underlying obligations.

Download

Inventory Security Agreement

An Indonesian law-governed agreement creating security interests over inventory assets, requiring fiducia registration for enforceability.

Download

Stock Pledge Agreement

An Indonesian law-governed agreement creating a pledge over shares as security for obligations, compliant with Indonesian pledge and securities regulations.

Download

Collateral Security Agreement

An Indonesian law-governed agreement establishing security interests over collateral to secure specified obligations, compliant with local fiducia security regulations.

Download

Personal Data Protection Agreement

An Indonesian law-governed agreement establishing data protection obligations between parties processing personal data, ensuring compliance with UU PDP 2022.

Download

Collateral Sharing Agreement

An Indonesian law-governed agreement establishing arrangements between multiple creditors for sharing and managing common security interests and collateral rights.

Download

Stock Lending Agreement

An Indonesian law-governed agreement establishing terms and conditions for securities lending transactions, compliant with OJK regulations and IDX rules.

Download

Stock Issuance Agreement

An Indonesian law-governed agreement detailing the terms and conditions for issuing new shares by a company to specified subscribers, ensuring compliance with local corporate and securities regulations.

Download

Share Security Agreement

An Indonesian law-governed agreement creating security over shares in an Indonesian company, establishing pledge arrangements and enforcement rights in compliance with local regulations.

Download

Third Party Security Agreement

An Indonesian law-governed agreement establishing security over third-party assets to secure a debtor's obligations to a creditor, compliant with Indonesian security and fiduciary laws.

Download

Pledge And Security Agreement

An Indonesian law-governed agreement establishing security interests over assets to secure obligations, subject to Indonesian fiduciary security regulations.

Download

Security Loan Agreement

An Indonesian law-governed agreement for temporary securities transfers between lender and borrower, complying with OJK regulations and capital market requirements.

Download

Agreement For Security Deposit

An Indonesian law-governed agreement establishing terms and conditions for holding, managing, and returning a security deposit between parties.

Download

Security Transfer Agreement

An Indonesian law-governed agreement facilitating the formal transfer of securities between parties, ensuring compliance with local securities regulations and market requirements.

Download

Personal Guarantee Promissory Note

An Indonesian law-governed document combining a promissory note with a personal guarantee, providing creditors with both a debt instrument and third-party security.

Download

Cross Collateral Agreement

An Indonesian law-governed agreement establishing cross-securitization of multiple assets against multiple loan obligations, creating an integrated security structure for lending arrangements.

Download

Asset Pledge Agreement

An Indonesian law-governed security document establishing pledges over assets, compliant with local secured transaction laws and registration requirements.

Download

Intercreditor Agreement

Indonesian law-governed agreement establishing priorities and rights between multiple creditors in a financing arrangement, compliant with local banking and security regulations.

Download

Pledge Of Shares Agreement

An Indonesian law-governed agreement creating a security interest over shares, detailing pledge terms and enforcement rights in compliance with local regulations.

Download

Overnight Reverse Repurchase Agreement

Indonesian law-governed agreement for overnight secured lending transactions through securities sale and repurchase, compliant with Bank Indonesia regulations.

Download

Loan Collateral Agreement

An Indonesian law-governed agreement creating security interests over assets to secure loan obligations, compliant with local security and registration requirements.

Download

Film Investment Contract

An Indonesian law-governed agreement establishing terms and conditions for film project investment, including funding structure, rights, and obligations under Indonesian film and investment regulations.

Download

Collateral Pledge Agreement

An Indonesian law-governed agreement creating security interests over assets as collateral for secured obligations, subject to Indonesian Fiducia Security regulations.

Download

Convertible Debt Agreement

An Indonesian law-governed agreement for convertible debt financing, enabling debt-to-equity conversion under specified conditions.

Download

Share Charge Agreement

An Indonesian law-governed security agreement creating a charge over shares as collateral for financial obligations, subject to OJK regulations and local registration requirements.

Download

Stock Transfer Contract

An Indonesian law-governed agreement for the transfer of shares between parties, complying with Indonesian Company Law requirements and regulations.

Download

Security Sharing Agreement

An Indonesian law-governed agreement establishing arrangements between multiple creditors for sharing security interests, including ranking, enforcement rights, and proceeds distribution.

Download

Stock Exchange Agreement

An Indonesian law-governed agreement between the Indonesia Stock Exchange and trading members establishing rights and obligations for securities trading operations.

Download

Stock Borrowing Agreement

An Indonesian law-governed agreement setting out terms for securities borrowing transactions, complying with OJK regulations and IDX rules.

Download

Reverse Repurchase Agreement

An Indonesian law-governed agreement for reverse repurchase transactions of securities, compliant with Bank Indonesia and OJK regulations.

Download

Contract Of Sale Of Shares

An Indonesian law-governed agreement for the transfer of company shares between parties, complying with Indonesian corporate and investment regulations.

Download

Negative Pledge Agreement

An Indonesian law-governed agreement where a borrower commits not to create security interests over its assets in favor of other parties, protecting unsecured lenders' positions.

Download

Margin Lending Agreement

An Indonesian law-governed agreement establishing terms for margin lending facilities between financial institutions and investors, compliant with OJK regulations.

Download
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now