Legal Protection for Creditors Regarding Working Capital Loan with Expired Hgb Certificate Collateral

Abstract

The present study aims to find out the legal protection for creditors regarding debtors’ collateral with expired right to build (hgb) certificate . it was done to find out the attempts can be made by the creditor regarding the debt repayment of debtors with expired hgb certificate. taking place in bri solo baru office, the present study employed normative study. the data were collected through literature review. the data were analyzed through data reduction, data display, and drawing of conclusion. the result of the study showed that: based on article 1 number 11 of law no. 10 of 1998 on the amendment of law no. 7 of 1992 on loan, working capital loan refers to the provision of money or equivalent claim to money based on a loan agreement, when hgb expires, the encumbrance right attached to the land is also annulled. accordingly, the creditor needs to carry out some actions to obtain legal protection. there are two attempts can be done by the creditor regarding the debt repayment of debtors with expired hgb certificates, namely making apht before the ppat, preceded by loan agreement, and renewing hgb certificate, which can be done by the bank or the debtor. auction can be done to maintain the creditor’s assets.