Protection for Parties Involved in A Bank Credit Agreement with the Principles of Balance and Good Faith

Meher, M and Sirait, N and Ginting, L (2019) Protection for Parties Involved in A Bank Credit Agreement with the Principles of Balance and Good Faith. In: WOMELA-GG 2019, 26 January 2019, Medan, Indonesia.

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Abstract

An agreement has a role and function to collect and distribute funds to economic actors. A bank encounters several problems due to the conflict of interests between a debtor and a bank, as the creditor. Generally, the problem is a wanprestatie (a default) by a debtor which becomes a conflict and foreclosure of collateral by the bank. As a preventive measure, a credit agreement is made by applying the principles of balance and good faith to protect the involved parties. Hence, both a debtor and a creditor feel secure and protected from various factors that may harm their interests. The present study is a normative legal research. It analysed the implementation of the balance principle to protect the parties in a bank credit agreement based on the Circular Letter of the Financial Services Authority Number 13/SEOJK.07/2014 concerning Standard Agreement. Meanwhile, for good faith principle, in addition to its regulation set forth in Article 1338 Paragraph 3 of the Indonesian Civil Code (KitabUndang-Undang Hukum Perdata/KUH Perdata), such principle becomes one of the requirements for a legally applied agreement as stipulated by the fourth term of agreement legality as set out in Article 1320 of KUH Perdata

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: bank debtor agreement
Subjects: H Social Sciences > H Social Sciences (General)
Depositing User: EAI Editor IV
Date Deposited: 22 Nov 2021 12:41
Last Modified: 22 Nov 2021 12:41
URI: https://eprints.eudl.eu/id/eprint/8532

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