| Summary: | This research aims to determine the legal consequences and liability upon
the issuance of covernote concerning mortgage either requested by the Bank as a
loan creditor or by the debtor in the credits.
This research uses an empirical normative research method. Normative
empirical research method consisted of secondary data and primary data,
secondary data compiles the official documents, books, research results that are
closely related to the problem of this research, field research is research
conducted by collecting data directly stepping off to research sites. This research
was used to obtain direct primary data in the form of information obtained
directly by interviewing the informants that carry out the activities of the
problems in this study at research sites. Interviews were conducted because in this
way will be acquired in-depth description of the informant. Due to the
researcher's consideration armed with the knowledge of the population to choose
the sample members, a purposive sampling and judgmental sampling are used to
the subjects of this research.
Results and discussion suggests that LDO's liability upon Covernote
concerning mortgage, the concerned parties may sue a default or unlawful act, it
depends on the content of Covernote,
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