The Effectiveness of the Implementation on Parate Execution of Mortgage Right as Alternative in Resolving Problematic Loans at Banking Institutions in Pekanbaru

Sampurno, Nino and Febrianto, Surizki and Munaf, Yusri (2021) The Effectiveness of the Implementation on Parate Execution of Mortgage Right as Alternative in Resolving Problematic Loans at Banking Institutions in Pekanbaru. In: the 1st UMGESHIC International Seminar on Health, Social Science and Humanities (UMGESHIC-ISHSSH 2020).

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Abstract

The research entitled “TheEffectiveness of the Implementation on Parate Execution of Mortgage Right as an Alternative in Resolving Problematic Loans at Banking Institutions in Pekanbaru” is motivated by the large number of financial institutions that function distribute the loans to the public. Lending begins with a loan agreement between the creditor and debtor and submission of collateral as a guarantee for the fulfilment of loan payments by the debtor. Problematic loans are a risk in lending to the public and problematic loans must be resolved quickly by the bank as the creditor. Article 6 of Law No. 4 of 1996 concerning Mortgage Rights to Land and Objects Related to Land, asserts that if the debtor is in breach of contract , the first Mortgage holder has the right to sell the object of the Mortgage on its own power through a public auction and take the payment of the debt from the proceeds of the sale, which is known as the Execution Parate. The purpose of this research was to discover the effectiveness of the implementation on Parate Execution of Mortgage Right as an alternative in resolving problematic loans and the obstacles of the implementation on Parate Execution of Mortgage Right at Bank Institutions in Pekanbaru. Dealing with the type of research, this research was included in the normative-empirical (applied) legal research class, while by its nature, this research was descriptive analytical.

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