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The Blocked Account Agreement is a crucial document used in Indonesian banking and finance transactions where funds need to be segregated and access restricted for specific purposes. This agreement type is commonly employed in project finance, escrow arrangements, security structures, or where regulatory requirements mandate fund isolation. The Blocked Account Agreement establishes the legal framework for managing restricted funds, defining the circumstances under which the account can be operated, and specifying the conditions for releasing funds. It must comply with Indonesian banking regulations, including those issued by Bank Indonesia and the Financial Services Authority (OJK), particularly regarding account management, anti-money laundering, and customer protection. The document is essential for transactions requiring secure fund management and controlled disbursement mechanisms within the Indonesian jurisdiction.

1. Parties: Identifies all parties to the agreement including the account holder, the bank, and any third-party beneficiaries or interested parties

2. Background: Sets out the context and purpose of the blocked account arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Account Establishment: Details of the blocked account, including account number, currency, and initial deposit requirements

5. Blocking Mechanism: Specifies how the account is blocked and the technical implementation of restrictions

6. Permitted Transactions: Defines what transactions are allowed and under what circumstances

7. Release Conditions: Specifies the conditions under which funds can be released or the account unblocked

8. Bank's Rights and Obligations: Details the bank's responsibilities in maintaining the blocked status and managing the account

9. Account Holder's Rights and Obligations: Specifies what the account holder can and cannot do with respect to the account

10. Fees and Charges: Details of all applicable banking fees and charges

11. Representations and Warranties: Standard representations and warranties from all parties

12. Anti-Money Laundering Compliance: Provisions ensuring compliance with Indonesian AML regulations

13. Term and Termination: Duration of the agreement and circumstances for termination

14. Governing Law and Jurisdiction: Specifies Indonesian law as governing law and relevant jurisdiction

15. Notices: Communication procedures between parties

16. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, and amendments