EXECUTION OF GUARANTEE GOODS AS COMPLETION OF CREDIT IN JETS IN FINANCING INSTITUTIONS

ABSTRACT In the implementation of credit agreements with financial institutions, the consequences of defaults can’t be separated from the occurrence of bad credit. When this happens, the action that can be taken by a financial institution is by executing the collateral. This execution process basically must be carried out based on procedures that aren’t against the law. This research is a type of empirical legal research. This research is important to find out how the implementation of credit agreements and the pattern of execution in resolving bad credit at financial institutions. The procedure for granting credit consists of the application stage, checking stage, credit analyst decision, binding agreement stage, ordering the goods, payment to the supplier and follow-up stage to the customer. Financial institution has minimized the cause of bad credit from its internal factors. In the case of non-performing loans which are not yet included in the category of bad credit, the field collection will remind customers to pay his/her installment, by calling them or visit the customer's house directly. Before reaching the execution stage, financial institution will send a warning letter to the customer that reminds them to fulfill their obligations. For bad credit category, an execution will be carried out immediately starting with the issuance of a warrant to the field collection to withdraw the credited item. The field collection must make a report about the execution process after it done. The goods that have been executed will then be auctioned with closed system. The most common obstacles are (1) the goods are not in the customer's hands because they have been lost or transferred to a third party, (2) the goods are in the name of another person and (3) the goods are damaged. Keywords: Agreement, Credit, Default, Collateral Execution.