Parate Executie Common Law and Civil Law

Abstract

Parate Executie is a legal action by the creditor (collateral holder) that enables the resale of collateral items via an auction by the Office of State Assets Services and Auctions (KPKNL) instead of court processing. In the case of non-performing loans, the bank can conduct an execution to fulfill the rights violated by the debtor by Parate Executie. The method employed in writing this law journal was normative with a statutory approach. A normative law study is based on legal materials that focus on reading and learning primary and secondary legal materials. Collateral item execution can be conducted using three methods, i.e., Parate Executie, Executorial Titles, and Underhand Sales. The principle underlying Parate Executie is the legal protection principle for the first collateral holder. Parate Executie is adhered to by Common Law countries, such as Indonesia and the Netherlands, which are different from Civil Law countries, such as France.