Bank Liability for Employees' Unlawful Acts in the Misuse of Land Rights Certificates as Credit Collateral

Abstract

Banks as public trust institutions are not only responsible for the security of customer funds, but also for all documents and assets under their control, including land title certificates used as loan collateral. However, in practice, control of these documents has the potential to create loopholes for internal employees to act beyond their authority, as occurred at one of the PD. BPR BKK in Central Java. This study aims to analyze the legal responsibility of banks for unlawful acts of employees in the misuse of land title certificates as loan collateral, as well as the form of legal protection for certificate owners who are harmed. This study uses a normative legal research method through a literature study with a statutory and conceptual approach. The results of the study indicate that banks can be held legally responsible based on the construction of Article 1365 in conjunction with Article 1365. Article 1367 paragraph (3) of the Civil Code through a functional interpretation of the phrase "in carrying out assigned work," which is reinforced by the institutional negligence of BPR in implementing the internal control system as required by POJK Number 9 of 2024. Legal protection for certificate owners is available preventively through POJK Number 22 of 2023 and POJK Number 9 of 2024, as well as repressively through civil lawsuits to the District Court and complaints to the OJK. This study concludes that it is necessary to strengthen regulations that specifically regulate protection mechanisms for customers in this dilemma in order to realize an accountable and fair banking system in accordance with the mandate of SDGs 16.