Legal Analysis of Legal Protection for Parties and Third Parties in Credit Agreements with Guarantee of Mortgage Rights

Abstract

This study aims to analyze and determine the form of legal protection for creditors, debtors, and third parties in credit agreements with Mortgage Rights as collateral; analyze the obstacles that arise in the implementation and execution of Mortgage Rights if the debtor is in default and efforts to resolve them; and create an example of a Mortgage Rights Deed that reflects the form of legal certainty and protection for the parties. This research method uses a normative juridical research method with a statutory approach and a conceptual approach. The sources of legal materials consist of primary legal materials in the form of laws and regulations, specifically Law Number 4 of 1996 concerning Mortgage Rights, the Civil Code, and laws and regulations related to credit and banking agreements; secondary legal materials in the form of books, scientific journals, research results, and opinions of legal experts. Based on the research, it is concluded that legal protection in credit agreements with Mortgage Right guarantees is provided preventively and repressively. Protection for creditors is realized through the encumbrance and registration of Mortgage Right which provides a position as a preferred creditor, the nature of droit de suite, and ease in carrying out execution if the debtor is in default. Protection for debtors is realized through clarity of rights and obligations in the credit agreement, certainty regarding the object and value of the collateral, and the creditor's obligation to carry out execution in accordance with applicable legal provisions. Meanwhile, third parties obtain legal protection based on their status and legal interests in the object of Mortgage Right, especially through the principle of publicity in the registration of Mortgage Right so that third parties can be aware of the existence of a Mortgage Right encumbrance on an object. Obstacles in the implementation of execution include objections from debtors or third parties, issues of control over the collateral object, administrative and land issues, and the execution process that requires time. Resolving obstacles is done through restructuring efforts or settlement through deliberation, fulfillment of administrative requirements, and implementation of execution through mechanisms in accordance with the provisions of laws and regulations.