Legal Protection for Creditors Due to the Removal of Ownership Rights Over Land as Collateral for Mortgage Rights

Mortgage rights provide legal security for creditors, but the loss of mortgage rights due to the expiry of land use rights (HGU) creates substantial legal weaknesses. Creditors lose their priority rights and are in a vulnerable position, so this issue affects the investment and property sectors. Article 18(1)(d) of the UUHT states that a mortgage will terminate if the ownership of the collateralised property ceases to exist. Although the mortgage is no longer valid, the debt contract or claim between the lender and borrower remains valid. The purpose of this study is to examine the legal protection provided to creditors due to the loss of ownership rights over land as the subject of a mortgage. The method used in this study is a normative method with a legal and conceptual approach. The legal protection provided includes preventive and repressive protection, as stipulated in various regulations such as Law No. 4 of 1996 on Mortgage Rights and the Criminal Code (KUHP). This study concludes that the absence of ownership rights over land used as mortgage collateral also affects the loss of mortgage rights. In such circumstances, creditors have several options to address their claims.