The 1st Workshop on Multimedia Education, Learning, Assessment and its Implementation in Game and Gamification in conjunction with COMDEV 2018, Medan Indonesia, 26th January 2019, WOMELA-GG

Research Article

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

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  • @INPROCEEDINGS{10.4108/eai.26-1-2019.2283204,
        author={M  Meher and N N Sirait and L  Ginting},
        title={Protection for Parties Involved in A Bank Credit Agreement with the Principles of Balance and Good Faith},
        proceedings={The 1st Workshop on Multimedia Education, Learning, Assessment and its Implementation in Game and Gamification in conjunction with COMDEV 2018, Medan Indonesia, 26th January 2019, WOMELA-GG},
        publisher={EAI},
        proceedings_a={WOMELA-GG},
        year={2019},
        month={4},
        keywords={bank debtor agreement},
        doi={10.4108/eai.26-1-2019.2283204}
    }
    
  • M Meher
    N N Sirait
    L Ginting
    Year: 2019
    Protection for Parties Involved in A Bank Credit Agreement with the Principles of Balance and Good Faith
    WOMELA-GG
    EAI
    DOI: 10.4108/eai.26-1-2019.2283204
M Meher1,*, N N Sirait1, L Ginting1
  • 1: Universitas Sumatera Utara, Medan, Indonesia
*Contact email: montayanameher@yahoo.com

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