Proceedings of the 1st International Forum on Psychology, Law, and Education (IFPLE 2025)

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Legal Analysis of Credit Agreement Breaches by Debtors in Banking Financial Transactions from a Business Law Perspective

Authors
Edi Candra Daula1, *, Elvira Fitriyani Pakpahan1, Rodiatun Adawiyah1, Willy Tanjaya1
1Program Studi Magister Kenotariatan, Fakultas Hukum, Universitas Prima Indonesia, Medan, Indonesia
*Corresponding author. Email: edic9404@gmail.com
Corresponding Author
Edi Candra Daula
Available Online 3 January 2026.
DOI
10.2991/978-2-38476-531-7_24How to use a DOI?
Keywords
Agreement; Debtor; Business Law
Abstract

A credit agreement is a civil legal relationship between a bank (creditor) and a customer (debtor) whereby the bank provides financing facilities to be repaid pursuant to agreed terms. In practice, debtor breaches—such as late installments, unauthorized transfer of collateral, or total failure to repay—occur and generate legal–economic impacts for banks and the financial system. This paper analyzes such breaches from a business law perspective, focusing on bank protection, dispute resolution, and the effectiveness of contractual clauses in ensuring legal certainty. Using a normative juridical approach based on legislation, doctrine, and court decisions, the study finds that although credit agreements are governed by the Civil Code and banking regulations, implementation faces challenges: low debtor compliance, weak internal bank supervision, and limited effectiveness of collateral execution. Strengthening credit clauses, enhancing institutional risk management, and optimizing legal protection are recommended.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 1st International Forum on Psychology, Law, and Education (IFPLE 2025)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
3 January 2026
ISBN
978-2-38476-531-7
ISSN
2352-5398
DOI
10.2991/978-2-38476-531-7_24How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Edi Candra Daula
AU  - Elvira Fitriyani Pakpahan
AU  - Rodiatun Adawiyah
AU  - Willy Tanjaya
PY  - 2026
DA  - 2026/01/03
TI  - Legal Analysis of Credit Agreement Breaches by Debtors in Banking Financial Transactions from a Business Law Perspective
BT  - Proceedings of the 1st International Forum on Psychology, Law, and Education (IFPLE 2025)
PB  - Atlantis Press
SP  - 224
EP  - 227
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-531-7_24
DO  - 10.2991/978-2-38476-531-7_24
ID  - Daula2026
ER  -