The Role and Responsibilities of Notaries/Land Deed Officials in Bank Credit Agreements Related to the Creation of Covernotes with the Binding of Uncertified Land Guarantee (A Study at the Office of Netty Sumiati, S.H., M.Kn., Notary/PPAT)

DOI

10.2991/978-2-38476-531-7_35How to use a DOI?

Keywords

Notary/PPAT; Credit Agreement; Covernote; Uncertified Land; Mortgage (Hak Tanggungan)

Abstract

Among the documents frequently produced by Notaries/PPATs in banking practice, the covernote is particularly notable. In loan origination, covernotes are often relied upon as temporary comfort when collateral documents are incomplete, enabling banks to proceed with disbursement while perfection of security is pending. This paper analyzes: (i) the role of Notaries/PPATs in mortgage-backed credit agreements, (ii) the legal certainty of covernotes for binding mortgages on uncertified land, and (iii) the legal consequences and responsibilities arising from covernotes. Using a normative–empirical descriptive approach based on legislation, doctrine, and interviews at the office of Notary/PPAT Netty Sumiati (Aceh Tamiang), the study finds that Notaries/PPATs are central to credit security formation (SKMHT/APHT, registration) and preliminary checks; however, covernotes are not expressly regulated in Indonesian positive law. For legal certainty in credit processes involving uncertified land, specific regulation of covernotes is recommended. In the interim, failure to fulfill a covernote’s stated commitments may expose the Notary/PPAT to civil and, in certain circumstances, criminal consequences.

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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TY  - CONF
AU  - Asrul Sani Harahap
AU  - Elvira Fitriyani Pakpahan
AU  - Heriyanti Heriyanti
PY  - 2026
DA  - 2026/01/03
TI  - The Role and Responsibilities of Notaries/Land Deed Officials in Bank Credit Agreements Related to the Creation of Covernotes with the Binding of Uncertified Land Guarantee (A Study at the Office of Netty Sumiati, S.H., M.Kn., Notary/PPAT)
BT  - Proceedings of the 1st International Forum on Psychology, Law, and Education (IFPLE 2025)
PB  - Atlantis Press
SP  - 312
EP  - 315
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-531-7_35
DO  - 10.2991/978-2-38476-531-7_35
ID  - Harahap2026
ER  -