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Check Authorization Letter for Indonesia

Check Authorization Letter Template for Indonesia

A Check Authorization Letter under Indonesian law is a formal document that grants specific authority to an individual or entity to handle check-related transactions on behalf of the account holder. The document must comply with Indonesian Banking Law and the Commercial Code (KUHD), incorporating necessary elements such as clear identification of parties, specific powers granted, and duration of authority. It serves as a legally binding instrument recognized by Indonesian banks and financial institutions, providing the authorized person with the power to perform specified check-related activities while protecting the interests of all parties involved.

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What is a Check Authorization Letter?

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.

What sections should be included in a Check Authorization Letter?

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

What sections are optional to include in a Check Authorization Letter?

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

What schedules should be included in a Check Authorization Letter?

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

Alex Denne

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

Jurisdiction

Indonesia

Publisher

Genie AI

Sector

Banking

Cost

Free to use
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

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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