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Original Research

SETTLEMENT OF DEFAULT BY THE DEBTOR ON THE CREDIT AGREEMENT

BAGUS IKHWAN CHRISTIAN 1, ACHMAD BUSRO 2, and BAMBANG EKO TURISNO 3.

Vol 18, No 12 ( 2023 )   |  DOI: 10.5281/zenodo.10369177   |   Author Affiliation: Doctoral Program in Law, Faculty of Law, Diponegoro University, Jl. Prof. Soedarto, SH., Tembalang, Semarang 1; Lecturer in Doctoral Law Program, Faculty of Law, Diponegoro University, Jl. Prof. Soedarto, SH., Tembalang, Semarang 2,3.   |   Licensing: CC 4.0   |   Pg no: 794-804   |   Published on: 12-12-2023

Abstract

The purpose of this study is to analyze:  1) What is the legal basis of credit agreements?  2) How is the settlement of default by the debtor on the credit agreement? The research method used is normative juridical with a statutory approach, concept approach, and case studies. The results showed that: 1) Based on Article 1 number 11 of Law Number 10 of 1998 concerning Amendments to Law Number 7 of 1992 concerning Banking explained the definition of Credit: "Credit is the provision of money or bills that can be likened to it, based on an agreement or loan agreement between a bank and another party that requires the borrower to pay off its debt after a certain period of time with a grant interest". In the provisions of the article, what is meant by agreement or loan agreement is a form of credit agreement where the agreement must be made in writing. 2) If the debtor remains unwilling or unable to fulfill the credit agreement, then the debtor can be sued by the creditor through the District Court on the basis of default. In certain circumstances, the Bank as a creditor can also carry out Parate Execution, which is the execution of collateral objects without going through the determination of the Chief Justice of the District Court.


Keywords

Settlement, Default, Debtor, Agreement, Credit.