Legal Protection for Debtors in Standard Contracts Related to the Application of the “Cross Default” Clause in Credit
- August 11, 2020
- Posted by: RSIS
- Categories: IJRISS, Law
International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue VII, July 2020 | ISSN 2454–6186
Salmon Ginting
Doctor of Law Program, Universitas Jayabaya, Jakarta-Indonesia
Abstract— The background of this research is the issue of the cross-default agreement between bank and customers. The clauses in the Bank Credit Agreement are very varied, one of which is: the “event of default” clause is a clause that gives the bank the right to unilaterally terminate credit for events determined by the bank and at the same time collect the remaining credit principal: the “event of default” elements contained in the cross default clause, such as the debtor receiving credit from several lending institutions separately in order to obtain the full amount of credit needs. This means that there are several bilateral credit agreements between the debtor and each of the crediting institutions. By law, each credit agreement is not related to each other except if in each credit agreement a cross default clause is included. The method used in this study is a normative legal research method/descriptive analytical approach. The legal strength of the cross-default agreement is weak because it is made on the basis of an imbalance of legal subjects and is indicated as having no good intentions. There is indeed no coercion, which means there is good faith, but the delivery of standard contracts with standard clauses and exoneration clauses without detailed explanation of the legal consequences is a form of denial of good faith.
Keywords: Bank credit agreement, customer, clause, financial services authority
I. INTRODUCTION
The position of the bank and its customers is equal in the credit agreement, but in terms of economic and social position the bank is higher than the customer because the bank has facilities that are used by the customer.[1] Along with the progress and development of the banking world, various types of credit agreements have emerged, one of which is the standard contract.
Bank credit agreements, generally in the form of standard contracts, with the use of standard contract, the bank will obtain efficiency in spending costs, labor and time. In connection with the mass and collective nature of the standard contract “vera Bolger” called it as “take it or leave it contract”, if the debtor agrees to one of the conditions, then the debtor may only accept or not accept it at all, the possibility of making changes is completely absent.[2] Standardization of credit agreements for entrepreneurs is a way to achieve economic goals efficiently, practically, and quickly, but for consumers it is an unprofitable choice to be only faced with one choice of accepting or rejecting.
