LEGAL CONSEQUENCES OF THE NAME CHANGE OF PT. BANK PEMBANGUNAN DAERAH SUMATERA BARAT TO PT. BANK NAGARI ON MORTGAGE RIGHTS

Abstract

The name change of Bank Nagari, as per the Statement of Meeting Decision Deed Number 13 of 2021, impacts not only the bank's name but also its guarantees. A bank guarantee is an accessoir agreement as regulated in Articles 1754 to 1769 of the Civil Code. During the execution process of the bank guarantee, KPKNL rejected the auction request submitted by Bank Nagari due to a discrepancy between the name on the mortgage certificate and the name of the auction requestor. This discrepancy prevents Bank Nagari from executing the Mortgage Rights as stipulated in Law Number 4 of 1996. Therefore, according to Article 16 of the UUHT, the name change of the mortgage must be registered with the land agency and recorded in the land book. In practice, the registration and name change of the mortgage holder are carried out by Bank Nagari on a case-by-case basis, although it applies to all bound collateral.