In business practice, fiduciary agreements are also used to protect the interests of creditors and ensure the repayment of debts between debtors and creditors. Fiduciary agreements are made at a notary with clauses that include the term of the agreement, the amount of credit to be paid, the method of payment, and the sanctions that apply if one of the parties violates. If someone fails to pay a loan, there are several consequences that are received. Through this article, the author discusses in depth what fiduciary is and how it works in business practice.

Fiduciary guarantee as a means to assist business activities and provide legal certainty to interested parties, the government has prepared a regulation regarding fiduciary in a law. The legal basis for the validity of fiduciary, among others: 1) Arrest Hoge Raad 1929, dated January 25, 1929 concerning Bierbrouwerij Arrest (Netherlands); 2) Arrest Hoggerechtshof August 18, 1932 concerning BPM-Clynet Arrest Arrest (Indonesia); and 3) Law Number 42 of 1999 concerning Fiduciary Guarantees.

Objects and Subjects of Fiduciary Guarantee

Based on Law Number 42 of 1999 concerning Fiduciary Guarantees, the object of Fiduciary Guarantee is divided into two types, namely: 1) Movable objects, both tangible and intangible; and 2) Immovable objects, especially buildings that are not burdened with mortgage rights. The objects that become the object of Fiduciary Guarantee according to the provisions of Article (1) paragraph (4), Article 9, Article 10, Article 20, Law Number 42 of 1999 concerning Fiduciary are: 1) Objects that must be owned and transferred legally, 2) Tangible objects, 3) Intangible objects, including debts, 4) Movable objects, 5) Immovable objects that cannot be bound by mortgage rights and 6) Immovable objects that cannot be bound by mortgage.

The subjects of the Fiduciary Guarantee are the giver and recipient of the fiduciary who bind themselves in the Fiduciary Guarantee agreement. The fiduciary giver is an individual or corporation that owns the object that becomes the object of the fiduciary guarantee, while the fiduciary recipient is an individual or corporation that has receivables whose payments are guaranteed by the fiduciary guarantee.