Legal Protection of Bank as the Recipient of Warehouse Receipt Security According to Law No. 9 of 2011 Regarding Warehouse Receipt System

DOI

10.2991/aebmr.k.200513.083How to use a DOI?

Keywords

legal protection, bank, Warehouse Receipt

Abstract

The banking industry has an important and strategic function in economic activity. In distributing funds or credit to borrower, a bank must first conduct a careful assessment toward the character, capacity, capital, condition of economy, and collateral of debtor. Warehouse Receipt is one of instruments that can be used as a security or collateral. In an effort to provide protection for the banks, Law No. 9 of 2011 on Warehouse Receipt System confirms that bank as recipient, shall notify the Warehouse Receipt collateral agreement to the Center of Registration and the Warehouse Manager. Warehouse receipt as collateral must be registered in Indonesia Futures Clearing Company (PT. Kliring Berjangka Indonesia) as the Center of Registration, to be recorded in the Register of Imposition of Guarantee on Warehouse Receipt Rights. In addition, the Warehouse Manager is responsible on any writing error in Warehouse Receipt and of the loss or damage of goods, either caused by its negligence in storing and delivering, or as a result of fire, thief, and flooding. The imposition of rights on Warehouse Receipt in Bank Rakyat Indonesia is implemented based on Circular Letter No. S.2-DIR/ADK/01/2008 governing the Loan of Working Capital Guaranteed by Warehouse Receipt. The research was conducted using a juridical-normative method referring to legal norms. The study concluded that Law No. 9 of 2011 on Warehouse Receipt System has provided sufficient protection for banks. The imposition of guarantee on Warehouse Receipt rights in Bank Rakyat Indonesia is in accordance with the said law. The process itself is conducted in three stages, firstly preceded by a basic loan agreement, followed by a Warehouse Receipt collateral agreement imposing the rights guarantee on Warehouse Receipt, and lastly, the registration of Warehouse Receipt as collateral to the Center of Registration.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Enny Patria
PY  - 2020
DA  - 2020/05/20
TI  - Legal Protection of Bank as the Recipient of Warehouse Receipt Security According to Law No. 9 of 2011 Regarding Warehouse Receipt System
BT  - Proceedings of the International Conference on Law, Economics and Health (ICLEH 2020)
PB  - Atlantis Press
SP  - 422
EP  - 428
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200513.083
DO  - 10.2991/aebmr.k.200513.083
ID  - Patria2020
ER  -