A Check Authorization Letter is a crucial document in Indonesian business and banking operations, used when an account holder needs to delegate authority for check-related transactions to another person or entity. This document is particularly important in situations where the primary account holder cannot personally handle check transactions, such as during business travel, illness, or when corporate efficiency requires delegation of authority. The letter must comply with Indonesian Banking Law (Law No. 7 of 1992 as amended by Law No. 10 of 1998) and the Commercial Code (KUHD), and typically includes specific details about the scope of authority, duration, and any limitations. It serves as a protective measure for all parties involved, including the bank, by clearly documenting the delegation of authority and its boundaries.
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1. Date and Place: Current date and location where the letter is being executed
2. Authorizer Details: Full name, address, and identification details of the person/entity giving the authorization
3. Authorized Person Details: Full name, address, and identification details of the person being authorized to handle checks
4. Scope of Authorization: Specific powers being granted regarding check handling (e.g., depositing, cashing, endorsing)
5. Check Details: Specific information about the check(s) covered by this authorization
6. Duration of Authority: Time period for which the authorization is valid
7. Bank Information: Details of the relevant bank(s) and account(s)
8. Declaration of Authority: Statement confirming the authorizer's right to grant this authority
9. Signature Block: Space for authorizer's signature, witness signatures if required
1. Multiple Authorized Persons: Section needed when authority is being granted to more than one person, specifying if they can act jointly or severally
2. Transaction Limits: Include when there are specific monetary limits on the authorization
3. Specific Restrictions: Any limitations or conditions on the authorization
4. Revocation Clause: Specific terms for how the authorization can be revoked
5. Indemnification: Protection clause for the bank or third parties acting on this authorization
6. Emergency Contact: Alternative contact information in case of issues or emergencies
1. Schedule A - Check List: Detailed list of specific checks covered by this authorization, including check numbers and amounts if applicable
2. Schedule B - Specimen Signature: Specimen signatures of both the authorizer and authorized person(s)
3. Schedule C - Identification Documents: Copies of relevant identification documents of all parties
4. Schedule D - Corporate Resolution: If the authorizer is a company, attach the corporate resolution authorizing this delegation
Authors
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Corporate Services
Retail
Manufacturing
Import/Export
Professional Services
Healthcare
Education
Hospitality
Real Estate
Construction
Logistics
Relevant Teams
Finance
Accounting
Treasury
Operations
Administration
Legal
Compliance
Corporate Secretariat
Banking Relations
Accounts Payable
General Administration
Relevant Roles
Chief Financial Officer
Finance Director
Finance Manager
Accounting Manager
Treasury Manager
Corporate Secretary
Account Controller
Financial Controller
Business Owner
Managing Director
General Manager
Operations Manager
Administrative Officer
Accounts Payable Supervisor
Treasury Analyst
Banking Relations Manager
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