The Characteristics of Notary Cover Notes for Banking Credit Distribution

Abstract

There is a Cover note in the banking world that has become a custom (customary law) in disbursing housing loans. A notary issued the covernote because there are requirements related to the object of the guarantee that has not been resolved. The absence of regulations that regulate covernotes causes a lot of problems, especially for Notaries. This study is intended to analyze and find the authority of a Notary as a General Officer in issuing Covernotes and the function of covernotes issued by Notaries in the context of disbursing Banking Credit. The research method used is normative legal research using 3 (three) kinds of problem approaches, namely the statutory and conceptual approaches. Based on the study results, it was concluded that the making of a covernote is not the authority of a Notary as a Public Official. The making of a covernote by a Notary is only based on the trust of banking institutions in the information submitted by a Notary. Covernote was born based on customary law that applies in the banking world to implement the prudential banking principle in credit disbursement.