Analysis of Article 6 of Law Number 4 Year 1996 Concerning Mortgage Rights and Article 1400 of The Indonesian Civil Code on Subrogation
Abstract
The problem of guaranteeing mortgage rights on the debtor's property will not actually occur if the debtor fulfills the obligations as stated in the principal credit agreement. However, it often happens that debtors cannot fulfill their obligations as agreed. Article 20 paragraph 1 of the Law Number 4 Year 1996 on Mortgage Rights has stipulated the protection for creditors by giving the authority to execute the collateral provided by the debtor once a state of default is established. The research results show that in the event where the debtor is in default, subrogation can be carried out, namely the reimbursement of the creditors’ rights to repayment by a third party. Subrogation occurs either by agreement or by law, and is different from debt relief in that it involves a third party who pays the recurring debts to the creditors, not with the aim of releasing the debtor from his obligation to pay the debt but replacing the position of the former creditor. With regards to mortgages as collateral in debt and loan agreements, if the debtor does not change the object of collateral as agreed in the initial agreement, then the same provisions on mortgage will be applicable to the new creditor. This paper features a juridical normative legal research with statutory and conceptual approaches.
Downloads
References
Djaja, B. (2022). Application of subrogation in case of compensation to the heirs of Sriwijaya Air SJ-182 plane crash victims. Journal of Positive Psychology and Wellbeing, 6(1), 1669–1679.
Gözlügöl, A. A. (2022). Controlling Tunnelling through Lending Arrangements: The Disciplining Effect of Lending Arrangements on Value-Diversion, Its Limits and Implications. European Business Law Review, 33(1).
Hidayat, A. R., & Alifah, N. (2022). Analysis of The Basis of The Creative Economy in The Development Strategy of Economic Innovation. Asian Journal of Social and Humanities, 1(3), 95–104.
Iswantoro, I. (2021). Strategy and Management of Dispute Resolution, Land Conflicts at the Land Office of Sleman Regency. Journal of Human Rights, Culture and Legal System, 1(1).
Malik, D., Limbong, M., & Wahyuningsih, S. E. (2018). Legal Protection For Debtors In Selling Of Immovable Guaranteed Objects Below The Market Price In Indonesian Positive Law. Jurnal Akta, 5(2), 356–365.
Mofu, R. (2023). Implementation of Mortgage Imposition by Land Deed Officials in Practice. Journal of Legal and Cultural Analytics, 2(1), 65–82.
Mora, N. (2012). What determines creditor recovery rates. Federal Reserve Bank of Kansas City Economic Review, 97, 79–109.
Muchtar, H. (2015). Analisis Yuridis Normatif Sinkronisasi Peraturan Daerah dengan Hak Asasi Manusia. Humanus, 14(1), 80–91. https://doi.org/10.24036/jh.v14i1.5405
Nurvadillah, N., Lutfi, M., & Haddade, A. W. (2022). Execution of Auction on Mortgage Rights For Productive Financing Due To Default Because of Pandemic Impact at Bank Sulselbar Sharia Maros Branch: Analysis of Islamic Law. International Journal of Islamic Studies, 2(2), 141–157.
Setiawan, K. (2019). The human rights courts: Embedding impunity. Dalam The Politics of Court Reform: Judicial Change and Legal Culture in Indonesia, Diedit Oleh M. Crouch, 287–310.
Ulhaq, A. D. D. (2023). The Position of Creditors of Individual Collateral Holders in Insolvency Law. YURISDIKSI: Jurnal Wacana Hukum Dan Sains, 19(1), 41–57.
Wibawanthi, A., Hidayat, A. R., Hardiyanto, F., & Ridwan, M. (2020). Analisis Program dan Pendayagunaan Zakat, Infaq, Dan Shadaqah (ZIS) Pada Lembaga Amil Zakat Muhammadiyah (LAZISMU) Kabupaten Cirebon. Jurnal Indonesia Sosial Sains, 1(01), 1–8.
Zainuddin, Z., & Ramadhani, R. (2021). The Legal Force of Electronic Signatures in Online Mortgage Registration. Jurnal Penelitian Hukum De Jure, 21(2), 243–252.
Zettelmeyer, J., Trebesch, C., & Gulati, M. (2013). The Greek debt restructuring: an autopsy. Economic Policy, 28(75), 513–563.
Copyright (c) 2022 Hardianto Candra, Benny Djaja
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
