Standard contracts in bank credit agreements

Doctoral Progam in Law, Graduate School, Universitas Sumatera Utara, Medan, Indonesia

^* Corresponding author: montayanameher@yahoo.com

Abstract

The application of standard contracts in bank credit agreements have triggered many legal issues in questions. In banking practice, each bank provides a form of credit agreement that has been prepared in advance. The type of agreements known as standard agreements. Using standard agreement is often problematic. Problems encountered in the standard agreements are the validity of the standard agreements and the making of clauses or provisions which are unreasonably burdensome to the parties, especially the debtor, which is called the exoneration clause. The existing credit agreements in Indonesian banking system are so diverse, means there is no uniformity. Each bank produce or prepare its own rules with certain clauses that may impair the customers. There is a need for a legislation that regulates credit matters and it is expected that it contains rights and obligations of the parties in preparing the agreement.