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A Termination Of Security Agreement is utilized when parties wish to formally conclude a security arrangement, typically following the full repayment of secured obligations or restructuring of financial arrangements. This document is crucial in Indonesian business practice, particularly in banking and finance transactions, where it provides legal certainty regarding the release of security interests and return of collateral. The agreement must comply with Indonesian law requirements, including specific regulations on security interests and their termination. It includes essential details such as the identification of the original security agreement, confirmation of fulfilled obligations, release of security interests, and procedures for de-registration with relevant authorities. The document is particularly important in Indonesia's civil law system, where formal documentation of legal relationships and their termination is strictly required.

1. Parties: Identification of all parties to the termination agreement, including the secured party and the security provider

2. Background: Recitals detailing the original security agreement, its date, and key terms, and the circumstances leading to termination

3. Definitions: Definitions of key terms used in the agreement, including reference to defined terms in the original security agreement

4. Termination: Express provision terminating the security agreement and specifying the effective date of termination

5. Release of Security Interest: Provisions confirming the release of all security interests created under the original agreement

6. De-registration: Obligations regarding the de-registration of security interests from relevant registries

7. Representations and Warranties: Confirmations from parties regarding authority to terminate and absence of third-party claims

8. Return of Documents: Provisions for the return of original security documents and certificates

9. Governing Law: Confirmation that Indonesian law governs the termination agreement

10. Execution: Formal execution requirements including signature blocks