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This is a Normative Juridical Approach study.

September 10, 2025Open Access

Legal Certainty in the Registration and Execution of Fiduciary Security Post-Contitutional Court Decision

Key Points

Legal certainty is essential for effective registration and execution of fiduciary guarantees, ensuring enforced agreements.
The constitutional court decision raised the requirement for proof of default, complicating execution processes significantly.
A normative juridical approach assessed the impact of the court ruling on the balance between debtor protection and creditor rights.
Harmonizing institutional practices and revising derivative regulations is crucial to restore legal certainty in fiduciary matters.

Abstract

Legal certainty is crucial in implementing fiduciary guarantees, especially regarding registration and execution as regulated in Law No. 42/1999. However, Constitutional Court Decision No. 18/PUU-XVII/2019 requires proof of default and mutual agreement before execution, raising practical challenges. This study uses a normative juridical approach by analyzing laws, court rulings, and doctrinal perspectives to assess legal consistency and post-decision constraints. The decision enhances debtor protection but causes procedural ambiguity, weakens executorial power, and delays execution. Inconsistent regulatory implementation worsens legal uncertainty. To restore legal certainty, derivative regulations must be revised and institutional practices harmonized. A fair balance between creditor rights and debtor protection is essential to maintain fiduciary guarantees as an effective credit instrument.

Legal Certainty in the Registration and Execution of Fiduciary Security Post-Contitutional Court Decision

Key Points

Abstract

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