E3S Web Conf.
Volume 52, 2018CSSPO International Conference 2018: Towards Inclusive & Sustainable Agriculture – Harmonizing Environmental, Social and Economic Dimensions: Is it Possible?
|Number of page(s)||8|
|Published online||27 August 2018|
Motor vehicle lease agreement with fiduciary warranty
Doctoral Program in Law, Graduate School, Universitas Sumatera Utara,
* Corresponding author: firstname.lastname@example.org
Purchasing motor vehicles with instalment (credit) is currently becoming favourite choice by many people including people who live in plantation and agriculture area. There are several reasons, such as easy pre-requirements, low down payment and saving time. The financing institutions that generally deal with motor vehicle credit are financing companies and banks. Although, they are different in their operational legal basis, in practice, financing company and bank fall under the category of fiduciary warranty agreements. This study focus on the potential fraud on law in financing of capital goods. This study used the normative and empirical legal research methods. In the end of the study, it found that it used loan financing with fiduciary guarantee not a lease agreement. As a consequence, the use of fiduciary warranty by financing company in a lease does not accord with the law and considered to be illegal. Last but not least the study found that Ministry of Finance and the Financial Services Authority (Otoritas Jasa Keuangan/OJK) as supervisory agencies financing business must to ensure law enforcement, certainty and effective oversight. OJK should provides sanctions for financing companies which do not comply in accordance with the legal provisions.
© Owned by the authors, published by EDP Sciences, 2018
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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