Creditors Rights and Authority to Sell own Objects of Warranties

Abstract

Binding of security rights over land carried out in accordance with the provisions of Law No. 4 of 1996 on Mortgage, namely: binding Encumbrance conducted before the Land Deed Officer, which was preceded by the credit agreement are secured by a security interest. Registration is done at the local Land Office. Encumbrance is only given to the land, or the land and buildings on it if it has been certified, while land and land and buildings on it are not yet certified, the bank first perform the certification of the land

Execution parate legal power to execute objects that serve as collateral Mortgage loans against borrowers who default form of sale through a public auction or sale under the hand is equal to the force of law through the execution of court decisions. In practice in the field, parate execution is not used to execute the Mortgage object which is used as collateral. Lenders still ask a court decision in advance in order to execute the Mortgage object.

Barriers arising in execution under the hand is: to whom money from the sale for the first time should be submitted; What about the rights of the other creditors (if any), meaning that the duty of who should draw up a list of divisions; agreement to sell under the hand must be included in the relevant Mortgage deed, or can be made separately at any time.