Legal Construction of the Principles of Voluntary Mortgage Warranty Transfer

DOI

10.2991/icblt-18.2018.3How to use a DOI?

Keywords

voluntary mortgage; warranty transfer

Abstract

The paper discusses the issues of whether or not a voluntary transfer of collateral by the debtor Bank is legal in line with the view of the legal aspects of the guarantee and the existence of the principles of voluntary transfer of the guarantee on mortgage in the amendment of Mortgage Legislation in the future. Normative legal approach and statute approach were utilized in discussing the issues in this study. Legal materials employed are the Law no. 4 of 1996 on the Mortgage Rights, Law no. 10 1998 on Amendment to the Law Number 7 of 1992 concerning Banking and a number of relevant literature, such as law, banking law, and law of agreement which is then analyzed based on descriptive, systematization and explanation steps. The findings showed that voluntary transfer of mortgage warranty by the debtor to the creditor is in accordance with legal aspect of Legal Guarantee if it is done during the implementation of the credit agreement on the reason that the debtor is in a state of unable to execute the payment or obligations agreed with the bank. Voluntary transfer shall be made by the debtor of the asset pledged to the bank and an agreement is formulated before the Notary by the Voluntary Assignment Deed or by other terms, such as the Deed of Financing Settlement Agreement (Obligations), and the pattern of settlement of the external disputes litigation or auction process is formally recognized in various laws and regulations. These provisions can form the basis for developing a dispute resolution pattern within the banking world in the framework of Mortgage Right Legislation renewal by adding one of the mortgage law principles, namely voluntary transfer principles.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - I Nyoman Sumardika
AU  - Ni Komang Arini Styawati
PY  - 2018/11
DA  - 2018/11
TI  - Legal Construction of the Principles of Voluntary Mortgage Warranty Transfer
BT  - Proceedings of the International Conference on Business Law and Local Wisdom in Tourism (ICBLT 2018)
PB  - Atlantis Press
SP  - 10
EP  - 13
SN  - 2352-5398
UR  - https://doi.org/10.2991/icblt-18.2018.3
DO  - 10.2991/icblt-18.2018.3
ID  - Sumardika2018/11
ER  -