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A Land Mortgage Agreement is essential for securing credit facilities with real property in Indonesia. This document is utilized when a property owner (Mortgagor) needs to provide security over their land and buildings to a creditor (Mortgagee), typically in connection with a loan or other financial obligation. The agreement must comply with Law No. 4 of 1996 on Land Mortgage Rights (Hak Tanggungan) and related regulations, requiring execution before a Land Deed Official (PPAT) and registration with the National Land Office. The document includes detailed property descriptions, secured obligations, enforcement mechanisms, and various representations and warranties. It's particularly crucial in commercial lending, property development, and investment transactions, providing creditors with strong security rights and enforcement capabilities under Indonesian law.

1. Parties: Identification of the Mortgagor (property owner), Mortgagee (usually a bank/financial institution), and details of their authorized representatives

2. Background: Context of the mortgage agreement, including reference to the underlying credit agreement or debt being secured

3. Definitions: Key terms used throughout the agreement, including technical terms related to the property and mortgage rights

4. Property Details: Comprehensive description of the mortgaged property, including certificate numbers, location, and boundaries

5. Mortgage Amount: The maximum amount secured by the mortgage, including the principal debt and additional costs

6. Rights and Obligations: Detailed rights and obligations of both the Mortgagor and Mortgagee

7. Representations and Warranties: Statements regarding property ownership, authority to mortgage, and absence of encumbrances

8. Registration and Execution: Procedures for registering the mortgage with the land office and execution requirements

9. Default and Enforcement: Events of default and the Mortgagee's rights of enforcement

10. Insurance: Requirements for insuring the mortgaged property

11. Costs and Expenses: Allocation of costs related to the mortgage creation and registration

12. Governing Law and Jurisdiction: Confirmation of Indonesian law application and jurisdiction

13. Notices: Communication procedures between parties

14. Execution Clause: Formal closing and signing section compliant with Indonesian law requirements