When we need additional capital for our businesses and seek funding from banks or other financial institutions, we will have to deal with many different types of agreements such as credit agreements, debt acknowledgment, or debt securities. Drafting and understanding such legal documents might be a daunting task for those without legal background.
Our professionals can help prepare and review all agreements and provide explanations to you so that you can measure the risk and understand all legal consequences of the agreements. Together with our team from the tax and finance department, we can also advise on the tax consequences that may arise from those agreements.
Bank is a business entity that collects funds from the public in the form of savings and distributes them to the public in the form of credit and/or other forms in order to improve people’s standard of living.
Commercial banks are banks that carry out business activities conventionally and/or based on sharia principles. Their activities mostly provide payment services. They also provide credit to customers who need funds for various reasons such as business capital, home renovation, health, education, daily necessities, etc.
Credit is the provision of money or bills based on a loan agreement, or an agreement between a bank and another party that requires the borrower to repay the debt within a predetermined period of time.
In general, the types disbursed by a commercial bank can be grouped based on their use, purpose, term, and business sector. The types of loans provided by the Bank are as follows:
Deeds required during the credit application process at the Bank:
We need these deeds if we are going to apply for credit to the Bank. The deed is prepared by a Notary from the Bank, prepared after the documents are complete.
The documents needed for the credit application process at the Bank are:
After the document is complete, the Bank must provide other supporting documents from the Bank, such as an order list containing the estimated price of the guarantee provided by the Creditor and a credit certificate containing the loan amount, interest, fees, and other provisions. Afterwards, the Notary can make a Debt Letter according to the data provided by the Bank.
Not only the Notary, the Deed related to the guarantee should also be provided by the Debtor. If the Debtor guarantees a land certificate, the Notary will also prepare a Power of Attorney for Imposing Mortgage Rights or commonly abbreviated as SKMHT. This SKMHT will be signed together with the Debt Letter. Before that, the Notary will check the certificate to find out whether the land is clean without any disputes, is being guaranteed at another bank, and so on.
After the SKMHT is signed, within a maximum period of 30 days, the Notary will proceed with the Mortgage Imposition process. The notary will make a deed of imposition of mortgage rights or abbreviated as APHT. This deed is sufficient to be signed by the Bank only, because the Debtor has authorized the Bank to sign everything including the Deed, which is explained in the SKMHT.
After signing the APHT, the Notary will register the Mortgage on the land at the Land Office in accordance with the collateral object.
If the guarantee provided is not a land certificate, but a movable object such as a car, motorcycle or other movable property, then the Deed to be made by a Notary is a Deed of Fiduciary Guarantee. This Fiduciary Guarantee Deed will be signed together with the Notes, and after signing the Fiduciary Guarantee will be registered with the Ministry of Law and Human Rights of the Republic of Indonesia.
Borrowing money from banks does not seem like a taboo and complicated thing. With the intense competition between banks, all the conveniences regarding terms and processes have been provided to prospective debtors so it would be easier to obtain loans.
Loans submitted to the Bank are usually used by the Debtor for consumptive needs, daily needs, business capital, and so on. The advantages of applying for a loan at the Bank are as follows:
The bank deeds include authentic deeds, which have 3 types of powers, namely:
These deeds have an important role, because they have the power of proof to third parties, which is not owned by private deeds. If applying for credit at the Bank without these deeds, both Creditors and Debtors can be harmed either by third parties or other parties.
We can provide notarial services to you, both as a Debtor or Creditor, to make the deed or letters needed for your credit application. We also have competent consultants in the banking sector who can help you if you need an opinion for either in applying or other matters related to credit.
After giving the documents, the bank will first process these documents and the bank will provide an order list to the notary to check your guarantee and provide information on what deeds should be made.
If your guarantee is a land certificate, the notary will check the certificate, then make a debenture and a letter imposing mortgage rights. Each guarantee may have a different deed.
We are unable to give an exact time, but we can inform you about the estimation after we receive complete documents from the Bank.
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