Fundamental Commitment and Agreement in Bank Credits: Evidence from Indonesia

Legal protection theory is economically and juridically given to weak communities. To protect human rights, the state wants a harmonious relationship between the government and the people based on a proportional functional relationship between state powers where dispute resolution is carried out through deliberation. The paper is aimed at discussing commitments and agreements among banks and bank creditors. The present study employed a descriptive qualitative method. The results show that objects are classified as movable and immovable in which five distinctions can be seen. The first is related to collateral charges including a distinction between movable and immovable objects, between movable and immovable objects that determine the form or type of encumbrance in the form of fiduciary or pledge and collateral in the form of immovable objects, of binding or encumbrance, and of Mortgage Rights. The second refers to leveraging, namely the distinction between movable and immovable objects resulting in differences in the delivery of the object. The third is oriented to movable objects, in which delivery is carried out by handing over the object, whereas for immovable objects the handover is done in exchange of name, for example. The fourth considers the terms of expiry for immovable objects with no expiration, while for movable objects there is an expiration. Finally, it regards the bezit for movable objects in which a bezitter of movable property is the owner of the object, whereas for immovable objects he is not the owner. Keywords: Credit guarantee, law, agreement, special guarantee, debt guarantee