Abstract
Banks are institutions that have an essential role in national economic development. Banks function as institutions that store and distribute funds to the public in the form of credit. In distributing and providing credit from banks to debtors, even though a credit analysis has been carried out, there are still risks that may be borne by the bank, such as late payments and failure to pay. Therefore, banks need Credit Collateral as collateral if this risk occurs. Credit collateral is an asset from a debtor guaranteed to the bank by installing a mortgage right so that the bank has the rights to the debtor's guaranteed assets. For debtors who have tax debts, the State will take their assets to pay their tax debts, including assets handed over to the bank. The problem occurs in this case where the bank's rights as the holder of mortgage rights are faced with the State's rights to fulfill tax debts. Tax bills will be considered the highest priority in the proceeds from the sale of assets. Even though the bank has mortgage rights, tax claims are usually still prioritized over the bank's rights. So, in particular financial or legal matters, the State may have a particular claim or priority over certain payments or assets, and the State may defeat the mortgage holder.
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More From: International Journal of Social Science and Human Research
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