LEGALITY OF BUY BACK GUARANTEE AGREEMENT TO RESOLVE NON- PERFORMING LOAN THROUGH THE SUBROGATION DEED (CASE STUDY OF DECISION NUMBER : 1202/PDT.G/2019/PN.SBY)

Abstract

Buyback Guarantee agreement is referred to as an agreement to be able to buy back an object that has been purchased through a mortgage facility by a bank if the debtor is declared in default, usually occurs in the sale and purchase of property in the form of houses, land and apartments. Buy Back Guarantee is an accesoir agreement that appears or follows after the main agreement, namely the sale and purchase agreement. The buy back guarantee agreement is also a preventive effort by banks in preventing bad loans. However, there is no law that specifically regulates this agreement but this agreement is very commonly found in property sale and purchase agreements. The formulation of the problem in this thesis is how the legality or legal force of the Buy Back Guarantee agreement between the creditor and a third party or developer is contained in the deed of subrogation. The research method used in writing this thesis is normative juridical by making Article 1338 of the Civil Code and Law no. 10 of 1998 concerning Banking as the basis for regulations on the topics studied. The results of research and discussion based on this thesis, that the buy back guarantee agreement is a valid agreement and has legal force if it fulfills the provisions contained in the law as a condition for the validity of an agreement.