The Money Settlement Agreement is a crucial legal instrument used in Indonesian business and legal practice when parties need to formalize the resolution of financial obligations or monetary disputes. This document is particularly relevant in situations involving debt restructuring, dispute resolution, or structured payment arrangements. It must comply with Indonesian Civil Code requirements and Bank Indonesia regulations, particularly regarding payment systems and financial transactions. The agreement typically includes detailed payment terms, release provisions, and security arrangements if applicable. It's commonly used by businesses, financial institutions, and individuals seeking to document settlement terms in a legally binding manner that provides certainty and protection for all parties involved.
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1. Parties: Identification and details of all parties involved in the settlement
2. Background: Context of the original debt or obligation and circumstances leading to settlement
3. Definitions: Definitions of key terms used throughout the agreement
4. Settlement Amount: Clear statement of the agreed settlement sum and currency
5. Payment Terms: Detailed payment schedule, method, and conditions of payment
6. Release and Discharge: Mutual release of claims upon completion of settlement payments
7. Representations and Warranties: Statements confirming parties' authority and capacity to enter agreement
8. Confidentiality: Obligations regarding confidentiality of settlement terms
9. Governing Law: Specification of Indonesian law as governing law
10. Dispute Resolution: Procedure for resolving any disputes arising from the agreement
11. Notices: Process and addresses for formal communications between parties
12. Entire Agreement: Confirmation that this document represents the complete agreement between parties
1. Installment Payment Provisions: Detailed terms for installment payments, used when settlement is not paid as lump sum
2. Security Arrangements: Details of any collateral or security provided, used when settlement includes security
3. Tax Provisions: Allocation of tax responsibilities, used when settlement has significant tax implications
4. Third Party Rights: Provisions regarding rights of third parties, used when other parties have interests in the settlement
5. Force Majeure: Provisions for unforeseen circumstances, used in long-term settlement arrangements
6. Non-Admission of Liability: Statement that settlement does not constitute admission of liability, used in dispute settlements
7. Bank Guarantee: Terms of bank guarantee if required, used when payment security is needed
1. Payment Schedule: Detailed breakdown of payment dates and amounts
2. Original Debt Documentation: Copies of documents evidencing original debt or obligation
3. Corporate Authorizations: Copies of corporate approvals and authorizations
4. Security Documents: Details and copies of security arrangements if applicable
5. Bank Account Details: Specified bank accounts for settlement payments
6. Power of Attorney: If settlement involves authorized representatives
7. Calculation of Settlement Amount: Detailed calculation showing how settlement amount was determined
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