“PROHIBITION CLAUSE OF BEDING (DIRECT)”

In a debt legal relationship with land collateral, then the legal status of the collateral at becomes the “Beding” (Direct Ownership) clause. Such an agreement is contrary to law and public order, BECAUSE THE COLLATERAL MAY NOT DIRECTLY BECOME THE PROPERTY OF THE CREDITOR IF THE DEBTOR DOES NOT PAY THE DEBT.

Supreme Court Decision No. 3337 K/Pdt/1991 dated March 18, 1993

* Beding property is a promise, that if the debtor defaults, then the collateral becomes the property of the creditor

* Look at Article 1154 Civil Code

Regards,

Fredrik J. Pinakunary