The Loan Forgiveness Letter is a crucial document used in Indonesian financial and legal contexts when a creditor decides to cancel a debtor's obligation to repay a loan. This document is particularly relevant in situations involving financial hardship, debt restructuring, family arrangements, or strategic business decisions. The letter must comply with Indonesian Civil Code (KUHPerdata) requirements and OJK regulations, particularly when involving financial institutions. It should clearly identify the original loan details, specify the extent of forgiveness (partial or complete), and include any conditions attached to the forgiveness. The document becomes especially important for tax reporting purposes, as debt forgiveness may have tax implications for both parties under Indonesian tax law. A properly executed Loan Forgiveness Letter provides legal protection for both creditor and debtor by formally documenting the termination of the loan obligation.
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1. Letterhead and Date: Official letterhead of the creditor and the current date
2. Recipient Details: Full name and address of the debtor
3. Subject Line: Clear indication that this is a Loan Forgiveness Letter with reference numbers
4. Loan Identification: Details of the original loan including date, amount, and any reference numbers
5. Forgiveness Declaration: Clear and unambiguous statement of the debt being forgiven
6. Legal Authority: Statement of the creditor's authority to forgive the debt
7. Release Statement: Formal release of the debtor from all obligations related to the specified loan
8. Signature Block: Space for creditor's authorized signature, name, title, and company stamp
1. Partial Forgiveness Terms: Used when only a portion of the loan is being forgiven, specifying the exact amount forgiven and any remaining obligations
2. Conditions for Forgiveness: Any conditions that must be met for the forgiveness to take effect
3. Tax Implications Notice: Statement regarding potential tax implications of the debt forgiveness
4. Confidentiality Clause: If the parties wish to keep the forgiveness confidential
5. Witness Section: Space for witness signatures if required for additional verification
6. Previous Payment Acknowledgment: Recognition of payments already made on the loan, if any
1. Original Loan Agreement: Copy or summary of the original loan agreement being forgiven
2. Payment History: Record of any payments made on the loan prior to forgiveness
3. Authorization Documents: Any corporate or legal documents proving the signatory's authority to forgive the debt
4. Calculation Sheet: If partial forgiveness, detailed calculation of forgiven amount and any remaining balance
Relevant legal definitions
Clauses
Relevant Industries
Banking & Financial Services
Legal Services
Corporate Finance
Private Lending
Microfinance
Real Estate
Commercial Banking
Investment Banking
Family Business
Small and Medium Enterprises
Non-Profit Organizations
Education (Student Loans)
Healthcare Finance
Relevant Teams
Legal
Finance
Credit and Collections
Risk Management
Compliance
Corporate Secretariat
Treasury
Debt Recovery
Account Management
Banking Operations
Loan Administration
Relevant Roles
Chief Financial Officer
Finance Director
Legal Counsel
Credit Manager
Loan Officer
Debt Collection Manager
Risk Management Officer
Compliance Officer
Corporate Secretary
Financial Controller
Banking Manager
Treasury Manager
Account Manager
Legal Director
Recovery and Restructuring Manager
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