JURIDICAL ANALYSIS OF ENCUMBRANCES AND EXECUTION THE OBJECT OF MORTGAGE TO PROVIDE LEGAL CERTAINTY PROTECTION FOR CREDITOR (RESEARCH STUDY AT PT. BPR INDOBARU FINANSIA BATAM)

Banking institutions are financial institutions that have strategic value in the economic life of a country. Bank has the rights to hold collateral and charged by Mortgage Rights which the rights that takes precedence over other creditors. This study aims to determine the process of encumbering the Mortgage Right, its execution to the bank object of encumbrance and to figure out the implementation, constraints, and solutions during the process. The research in this study uses empirical legal research, supported by normative legal research. The research method uses sociological normative juridical. The result of the study explained that the Mortgage rights is carried out based on a debt agreement between the bank and the debtor called as credit agreement. Therefore, the Mortgage rights is accecoir which is a special agreement made by the main agreement. Mortgage rights cannot be divided unless being agreed previously by the parties. The validity of the Mortgage Rights is proven by the issuance of Mortgage Deed from the National Land office and registered on the Rights of Land Certificate. The existence of Law Number 4 of 1996 about Mortgage Rights to guarantee the debt granted by the bank as the holder of the Mortgage rights to the debtor. If the debtor breaks the agreement, then the land encumbered by the Mortgage rights can be sold by the holder of Mortgage right through the public auction and/or through underhand sales. The Mortgage rights provide the protection both in legal and economic terms to the bank as the holder of the Mortgage rights