Use of a Deed of Power of Attorney to Sell as a Credit Agreement Guarantee Binding at the People's Economic Bank Cempaka Wadah Sejahtera, Pekanbaru City

Abstract

The Use of a Deed of Power of Attorney to Sell as a Collateral Bond for a Credit Agreement at Bank Perekonomian Rakyat Cempaka Wadah Sejahtera, Pekanbaru City, is not in accordance with applicable regulations. Mortgage is the only collateral for land recognized as collateral for debt repayment. Therefore, the creditor or bank should install a mortgage on the collateral that has been made in the credit agreement, as legal certainty to obtain executorial rights regulated in Law Number 4 of 1996 concerning Mortgage Rights on Land and Objects Related to Land in the event of a bad credit. The first research is to find out what are the considerations of Bank Perekonomian Rakyat Cempaka Wadah Sejahtera, Pekanbaru City in using a deed of power of attorney to sell as a collateral bond for a credit agreement, secondly to find out how the legal certainty of the use of a deed of power of attorney to sell as a collateral bond for a credit agreement by Bank Perekonomian Rakyat Cempaka Wadah Sejahtera, Pekanbaru City. This research method is empirical juridical legal research. The results of this study are that the binding of credit agreement collateral using a notarial power of attorney was carried out by Bank Perekonomian Rakyat Cempaka Wadah Sejahtera, Pekanbaru City, considering the increasingly tight price competition between banks. Bank Perekonomian Rakyat Cempaka Wadah Sejahtera, Pekanbaru City, considers the use of a power of attorney to be more efficient and cost-effective for debtors. A power of attorney has binding legal force for the parties involved. This means that the party granting the power of attorney and the party receiving the power of attorney are bound by the provisions and obligations contained in the power of attorney. However, the power of attorney does not have an executorial nature as stipulated in Law Number 4 of 1996 concerning Mortgage Rights on Land and Objects Related to Land, which means that the power of attorney cannot be used directly as a basis for legal execution without going through an additional process.