Bank consumer credit buyback

This study aims to analyze the legality of buy back guarantee which is increasingly being used in banking and financing institutions. The research results are very important to determine the position of the buy back guarantee agreement in the debtor and creditor credit agreement so that the legal relationship between debtors, creditors and third parties can be found. This type of research is literature research, legal materials are analyzed qualitatively with a normative juridical approach.
The research concludes that the fulfillment of the insurance elements in Article 1820 of the Civil Code is a legal basis to justify the buy back guarantee as a guarantee agreement. However, buy back guarantee does not provide legal certainty for creditors because it does not have executorial power like material guarantees. Therefore, based on the research results, it is recommended for legislators to immediately formulate laws and regulations governing buy back guarantee as a strong legal basis for banks and financing institutions in the practice of guarantees.

car loan repurchase in real estate credit

For example, when a person or company is waiting for long-term financing while he needs money to cover temporary costs. An example is a company having an equity funding round that is expected to be closed for six months.

So he can choose to use a bridge loan to cover the equity funding. For example, to provide working capital, cover payroll, utilities, rent, inventory costs, and various other costs until the funding round can be covered all.