Abstract
This research aim to understand the condition when a customer is no longer able to pay or repay a loan is called bad credit. This condition can actually cause many problems, ranging from difficulties in obtaining credit approvals to blacklisting by the bank. Collaterals are one of the requirements from the Bank when giving credit loans so that those collaterals can guarantee the credit’s acquittal should the debtor be breached. If there is a case of bad debts, banks have the option to solve the credit loan through the process of Foreclosed Collaterals. This journal is written on a legal and juridical-normative research, emphasizing the usage of written documents as the main sources of law. The collateral purchases are written in Article 12A Number 10 of 1998 of the Constitution on how banks may purchase the collaterals with or without auctions to solve bad credits even faster. Considering that Article 20 of the Constitution on Mortgage Rights has already written ways on collateral executions, therefore the warrant payment will follow the option of Foreclosed Collaterals. Reporting from the official website of Bank Indonesia (BI), to minimize the risk of increasing bad loans, BI issued PBI (Bank Indonesia Regulation) No. 14/2/PBI/2012 concerning APMK (Card-Based Payment Instruments). The regulation was made to reduce the risk of negative impacts from using credit cards as debt instruments to the extent that they reach excessive limits. Using statute and conceptual approaches, it is inferred that Foreclosed Collateral purchase procedures can be done in 3 (three) different ways, followed through the Settlement Efforts, where the ownership of the collaterals must be switched to another in 1 (one) year time.
Highlights
IntroductionIndonesian Banks are strategic tools to improve the country’s development, economic growth, and national stability to improve the quality of people’s lives
Indonesian Banks are strategic tools to improve the country’s development, economic growth, and national stability to improve the quality of people’s lives. This is because banks are categorized as intermediary institutions. This is regulated within Article 1 Number 2 of Act No 10 of 1998 of Act No 7 of 1992’s Amendment regarding Banks which defined banks as “business entities that collect funds from the community in the form of savings and distribute them to the community in the form of credit and or other forms in order to improve the living standards of many people.”
Banks as intermediary institutions can operate on various business activities, as regulated in Article 6 Number 10 of 1998, one of which is credit loans
Summary
Indonesian Banks are strategic tools to improve the country’s development, economic growth, and national stability to improve the quality of people’s lives. Agreements between banks as creditors and customers as debtors regarding money loans or similar debts which oblige the debtors to pay off their debts after a certain time has passed with the amount of interest, compensation, or expenses sharing To this day, there have been no specific regulations regarding the forms and contents of the Credit Agreement, the regulations are often left to the mutual agreements of both parties involved. Article 12A of the Constitutions on Banking provides other available ways for banks to deal with breached debtors who are unable to return the borrowed money through temporary collaterals. This process is later referred to as Foreclosed Collaterals.
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