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Page 1 (Article 1-91) - Page 2 (Article 92-182) - Page 3 (Article 183-273) - Page 4 (Article 274-364) - Page 5 (Article 365-455) - Page 6 (Article 456-498) - Page 7 (Article 499-589) - Page 8 (Article 590-680) - Page 9 (Article 681-771) - Page 10 (Article 772-862) - Page 11 (Article 863-953) - Page 12 (Article 954-1044) - Page 13 (Article 1045-1135) - Page 14 (Article 1136-1226) - Page 15 (Article 1227-1232) - Page 16 (Article 1233-1323) - Page 17 (Article 1324-1414) - Page 18 (Article 1415-1505) - Page 19 (Article 1506-1596) - Page 20 (Article 1597-1687) - Page 21 (Article 1688-1778) - Page 22 (Article 1779-1864) - Page 23 (Article 1865-1955) - Page 24 (Article 1956-1993)
Chapter XIX - Concerning Priority Of Debts
Article 1136
Creditors having the same priority, shall be paid equally.
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Article 1137
The priority of the State's treasury, the auction offices and other public institutions stipulated by high authority, the order in which they shall be implemented, and the time of the duration, shall be regulated by the relevant special legal ordinances. Associations or entities, which would have been authorized to or shall be further authorized to impose charges, shall be regulated by the ordinances already existing or to be further regulated.
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Article 1138
The subject of the priorities may be specific assets or all movable and immovable assets in general. The specific assets shall have priority over the latter mentioned.
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Article 1139
The priority of debts in respect of certain specific assets shall be as follows:
- (1) court charges which specifically result from the disposal of a movable or immovable asset. These shall be paid from the proceeds of the sale of the assets over all other priority debts, and even over a pledge or mortgage;
- (2) the rent from immovable assets, the costs incurred in the repairs for which the lessee is responsible, including anything related to the compliance with the provisions of the lease agreement;
- (3) unpaid consideration for the sale of movable assets;
- (4) the costs incurred in the maintenance of the property;
- (5) the wages owing to laborers for the work carried out to the property;
- (6) anything delivered to a traveler by an innkeeper;
- (7) freight costs and additional charges;
- (8) any amount due to bricklayers, carpenters and other workmen as a result of the renovation, addition to and repairs of immovable assets, including a debt which is in existence for not more than three years, and the title to a plot which has been held by the debtor;
- (9) the compensation and payment for which public officials are responsible, due to negligence, error, violations and misdemeanor, which were committed during the course of their service.
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Article 1140
The lessor may apply his privilege to the fruit which are still attached to the branches of the trees, or by roots to the ground; furthermore, he shall also have priority in respect of the harvested fruit and fruit due to be harvested which are still on the ground, and anything on the ground, either to furnish the leased house or the orchard, for the planting or use of the land, such as cattle, the farming equipment and the like; regardless of whether or not the objects mentioned above belong to the lessee. If the lessee has legally sub-leased part of the leased property to another individual, the lessor can no longer apply his privilege to objects which are found in or on such part only which comprises the part which has been *312 sub-leased, and only insofar as the sub-lessee can prove compliance with the rent obligations in accordance with the lease agreement.
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Article 1141
The sale price still due in respect of purchased seeds and the costs incurred in respect of the harvest of the current year, shall be paid from the proceeds of the harvest, and the unpaid purchase price for equipment from the proceeds of such equipment and payment of such shall have priority over the outstanding rent to the lessor.
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Article 1142
The lessor may seize the movable assets to which he is privileged in article 1140, if such have been moved without his consent; and he shall retain this privilege, notwithstanding that these assets may be tied to a third party, by pledge or in any other manner, provided that he has legally claimed the objects within a period of forty days following the moving of the movable assets belonging to the orchard, and within fourteen days if the assets were used for the furnishing of the house.
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Article 1143
The privilege of the lessor shall extend to the amount of rent due under a lease, for the duration of the last three years inclusive of the current one.
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Article 1144
The seller of the movable and unpaid assets may apply his priority to the sale price of the assets, if they are still in the possession of the debtor, without distinguishing between whether he has sold the assets in time or without any time limits.
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Article 1145
If the sale was not subject to any time limits, the seller shall have the authority to re-claim the assets, to the extent they are still in the possession of the buyer, and to prevent the re-sale thereof, provided the reclamation occurs within thirty days after the delivery. Articles 231, 233, 234, 236 and 237 of the Commercial Code shall also apply in this regard.
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Article 1146
The seller, however, can only exercise his right after the right of the lessor of the house or the farm, unless it is proven that the lessor was aware that the furniture and other assets, to be used for the house or the orchard, have not been paid for by the lessee.
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Article 1146a
The right of the buyer shall lapse, if the assets, after having been in the possession of the original buyer or his representative, are purchased by a third party in good faith and delivered to him. If, however, the consideration for the sale has not been paid by such third party, then the original seller may claim the money in the amount of his sale price, provided that the claim shall take place within a period of sixty days following the original delivery.
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Article 1147
The priorities mentioned in articles 1139, No. (4), (5), (6), (7), (8) and (9) shall be implemented as follows:
- No.4, in relation to the asset for which maintenance costs are incurred;
- No.5, in relation to the asset on which works have been carried out;
- No.6, in relation to the assets which have been carried to the inn by the traveler;
- No.7, in relation to the transported asset;
- No.8, in relation to the proceeds of the renovated, extended or repaired parcel plot of land;
- No.9, in relation to the amount of the security put up by the officials, and the interest accrued thereon.
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Article 1148
If several priority creditors, mentioned in this section, appear together at the same time, then the costs incurred in the maintenance of the assets, shall have priority, in the event that they have been incurred after the time at which the other priority debts came into existence.
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Article 1149
The priority loans in regard to the movable and immovable assets in general shall be as follows and shall be claimed in the following order:
- (1) the legal charges, exclusively caused by sale and saving of the estate; these shall have priority over pledges and mortgages;
- (2) the funeral charges, if they are excessive, without prejudice to the authority of the judges;
- (3) all costs incurred in relation to the last illness;
- (4) laborers' wages during the last year and that which is due for the current year, including the amount of any raise of such wage pursuant to article 1602q; the amount of expenses incurred by a laborers for the employer; the amount owed by the employer to a laborer pursuant to article 1602v., par.4 of this Civil Code as well as article 7, paragraph 3 of the "Supplementary Planters Regulation", the amount owed by the employer to a laborer at the termination of his service pursuant to article 1603 or 1603 bis; the amount due by the employer to a laborer's family upon the worker's death, pursuant to article 13 paragraph 4 of the "Supplementary Planters Regulation"; whatever the employer, pursuant to the "1939 Accident Regulation" or the Ship Crew Accident Regulation 1949 is due to a laborer or ship crew or surviving relations including the debt claim pursuant to the 1939 Returned Laborers Regulations;
- (5) the debt claim against delivery of food to the debtor and his family, during the last six months;
- (6) the debt claims of boarding schools for the most recent year;
- (7) the debt claims of minors or individuals under conservatorship filed against their guardians and conservators, in respect of their management, to the extent that this cannot be compensated for by the mortgages or other security, which were put up pursuant to the fifteenth chapter of the first book of this civil code, including the payments due by the parents pursuant to the first book for the support and education of their minor legally acknowledged children.
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Chapter XX - Concerning Pledges
Article 1150
A pledge is a right which is obtained by a creditor in a movable asset, which has been provided to him by the debtor or his representative, to secure a debt, and which entitles the creditor priority over the other creditors with regard to the settlement of the debt; with the exception of the costs incurred in the sale of the asset and the costs incurred, after the pledge, for the maintenance of the asset, which shall have priority.
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Article 1151
A pledge agreement shall be proven by the same means as those used for proving a principal agreement.
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Article 1152
A pledge right in respect of tangible movable assets and debts payable to bearer shall be established by placing the pledge in the power of the creditor or a third party, who has been mutually agreed upon by the parties. It shall not apply to assets, which are left in the power of the debtor or the pledgor, or which shall be returned if the creditor so desires. It shall become void, if the pledge is no longer controlled by the pledgee. In the event that this occurs as a result of loss or transfer, he shall have the right to reclaim pursuant to article 1977, paragraph (2), and upon the return of the assets pledged, the pledge right shall be considered to have never been lost. The absence of authority of the pledgee to dispose of the assets cannot be denied by the creditor who has taken such assets in pledge, without prejudice to the right to reclaim by the individual who has lost the asset or from whom it was taken.
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Article 1152 bis
In addition to the endorsement, the delivery of the paper shall also be required to establish the pledge right on bearer paper.
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Article 1153
Pledge right to intangible movable assets, with the exception of those evidenced on bearer paper, shall be established by notification of the pledge to the individual, against whom the pledged right shall be exercised. He may claim written proof of the notification and the consent of the pledgees.
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Article 1154
The creditor shall not appropriate the pledge, if the debtor or the pledgor has not complied with his obligations. Any stipulations otherwise regulated shall be deemed to be invalid.
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Article 1155
Unless the parties otherwise stipulate, in the event that the debtor or the pledgor does not comply with his obligations, the creditor shall be authorized, following the lapse of a specific term or in the event that no specific term was stipulated, after a summons in respect of compliance, to sell the pledge in public pursuant to local customs and in accordance with the usual requirements, to settle the debt which shall include the interest and costs incurred from the proceeds of the sale. In the event that the pledge is of commercial items sold at the market or securities traded on the stock market, then the sale can also take place in such locations, provided that two agents involved in such business shall act as intermediaries.
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Article 1156
In the event that the debtor or the pledgor fails to fulfill his obligations, the creditor may demand in court that the pledge shall be sold to satisfy the debt including the interest and costs, in the manner to be determined by the judge, or the judge shall admit the creditor's request that the pledge shall be retained by him, until an amount has been determined in the judgment to pay off the debt and the interest and costs. With regard to the transfer of the pledge in the events mentioned herein and in the previous article, the creditor is required to notify the pledgor by not later than the following day if there is a daily postal service or telegram communication, or else by the first departing mail. Notification by telegram or registered letter shall be regarded as proper notification.
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Article 1157
The creditor shall be responsible for the loss or the depreciation of the property pledged, to the extent that this is caused by his negligence. However, the debtor shall be required to compensate the creditor for the necessary expenses, which the latter-mentioned has incurred in the maintenance of the land.
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Article 1158
If a loan is pledged, and interest accrues on this loan, the creditor shall set off the interest against the amount which is due to him. If no interest accrues on the debt secured by the pledged loan, then the interest received by the pledgee shall be deducted from the principal sum.
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Article 1159
The debtor is not authorized to claim the return of the pledged assets unless the pledgee misuses these, prior to settling the full amount which shall comprise the principal sum as well as the interest and charges incurred upon the debt which has been secured by the pledge, including the charges incurred in respect of the maintenance of the pledge. In the event that a second debt arises between the same debtor and the same creditor, following the pledge, and collectible prior to the payment, or on the date of the payment of the first debt, the creditor shall not be obliged to dispose of the property pledged, prior to full settlement of both debts, even though no stipulations have been made to secure the pledge for payment of the second debt.
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Article 1160
The pledge cannot be divided, notwithstanding that the debt among the heirs of the debtor or of the creditor can be divided. The heir of the debtor who has paid his share of the debt, cannot claim the return of his share in the pledge until the debt has been fully settled. At the same time the heir of a creditor who has received his share in the debt, cannot return the pledge thereby jeopardizing the co-heirs who have not been paid yet.
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Article 1161
Revoked: S.38-276.
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Chapter XXI - Concerning Mortgages
Article 1162
A mortgage is a property right over immovable assets, created for the purpose of providing security for the compliance with an agreement.
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Article 1163
That right is by its nature indivisible and is attached to all secured immovable assets in their entirety, to each of the assets and to each part thereof. These assets shall remain encumbered, regardless of whom they are transferred to.
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Article 1164
Assets which can be mortgaged are as follows:
- (1) immovable assets which can be traded, including all parts thereof, to the extent that the latter mentioned can be regarded as immovable assets;
- (2) the use of proceeds of those assets and parts thereof;
- (3) building and planting rights and the right to tenure by long lease;
- (4) ground rents due whether in cash or in its original state;
- (5) the one tenth right;
- (6) the bazaars or markets, acknowledged by the government, together with the privileges attached thereto.
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Article 1165
Mortgages shall extend to all further renovations of the encumbered asset, including anything which has become part thereof due to planting or additional development.
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Article 1166
The undivided share in a joint immovable asset may be encumbered by a mortgage. Following the division of such, the mortgage shall only be attached to the portion that belongs to the debtor who has granted the mortgage, without prejudice to the stipulation in article 1341.
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Article 1167
Movable assets cannot be mortgaged.
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Article 1168
A mortgage cannot be imposed by any individual other than by the individual who has the authority to dispose of the encumbered asset.
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Article 1169
Individuals, who have such right to an immovable asset which has been suspended by a condition, or which can be canceled or invalidated in certain cases, cannot permit any mortgages, other than those which are subject to the same requirements, cancellation or invalidation.
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Article 1170
Assets belonging to minors, individuals under conservatorship, and absentees, to the extent such property is only given temporarily, can only be encumbered by mortgage, for reasons, and in accordance with the formalities, which are stipulated by law.
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Article 1171
A mortgage shall only be granted by authentic deed, with the exception of those circumstances expressly stipulated by law. The power of attorney for the grant of a mortgage shall be concluded by authentic deed. Any individual, who pursuant to law or an agreement, is obligated to grant a mortgage, may be required to do so by judgment, which shall have the same effect as if he has consented to the mortgage, and shall specifically indicate the assets which shall be registered. A married woman, who has obtained a mortgage by virtue of the prenuptial agreement, may, without the assistance of her husband, or the authorization of the judge, implement the mortgage registrations and file the required legal claims thereto.
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Article 1172
The sale, delivery and allocation of a mortgage debt can only take place by authentic deed.
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Article 1173
No mortgage may be registered on assets located within Indonesia pursuant to an agreement concluded in a foreign country, unless it is otherwise stipulated by treaties.
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Article 1174
The deed that contains the mortgage shall contain a description of the mortgaged asset, including the nature and location, insofar as is possible pursuant to the measurements done upon the government's authority. With respect to the one tenth and ground rents, which cannot specifically indicate which parcels they relate to, it shall be sufficient to provide an accurate description and indication in the deed of the area subject to the mortgage.
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Article 1175
A mortgage may only be imposed on current assets. A mortgage on future assets shall be void. If, however, the wife has agreed to the mortgage, in the prenuptial agreement, or if, in general, a debtor has bound himself to grant a mortgage to the creditor, then the husband or the debtor may be required to fulfill their obligations, by also indicating the assets which he may have acquired after the conclusion of the agreement.
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Article 1176
A mortgage shall be valid only to the extent that the amount thereof is certain and stipulated in the deed. If the debt is conditional or the amount thereof is not specified, then the mortgage shall be valid for the estimated value, which the parties are obliged to indicate in the deed.
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Article 1177
The creditor may not, under any circumstances, claim an increase in the mortgage, unless it is otherwise stipulated by the law.
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Article 1178
All stipulations, which authorize the creditor to appropriate the mortgaged assets, are deemed void. The first mortgage creditor shall, at the time that the mortgage is being created, be entitled to expressly stipulate that in the event that the principal sum is not fully settled, or that interest due is not fully paid, he shall be irrevocably authorized to sell the mortgaged property in public, for the purpose of repaying the principal sum including the interest and the charges incurred. Such stipulation shall be recorded in the public registers, and the auction shall take place in the manner set forth in article 1211.
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Article 1179
The registration of mortgages shall take place in the registers designated for that purpose. In the absence of the registration, the mortgage shall not have any effect, even with regard to creditors, who do not have any connection with mortgages.
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Article 1180
The registration of a mortgage shall be invalid, if it takes place at a time when the title of the asset has been transferred to a third party as a result of which the debtor already has lost his title thereto.
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Article 1181
The priority of the mortgage creditors shall be determined according to the date of their registration, without prejudice to the exceptions mentioned in the following two articles. Mortgages which are registered on the same date, shall bear the same date, without any distinction being made between the times at which the registrations took place, notwithstanding that the time may have been noted by the registrar.
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Article 1182
In the event that, in the sale purchase deed, a mortgage is created over the sold assets, to secure the payments due, and the registration takes place within eight days following the publication of the sale purchase deed in the manner stipulated in article 620, then this mortgage shall have priority over the mortgages which the buyer, within that time period, shall have permitted on the asset.
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Article 1183
The same provision shall apply, if in the deed regarding separation of assets a mortgage is created to secure that which is due by one partner to the other, pursuant to a separation, or for protection of the designated assets. Even in this instance, a registration, carried out within eight days after the publication of the separation deed by the partner shall, to the extent that it concerns this provision, have priority over the mortgages which the recipient, within that time period might have permitted on the asset.
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Article 1184
A creditor who is registered in respect of a principal sum upon which interest accrues shall be entitled to, for not more than two years and including the current year, be placed in the same rank of mortgage as his principal sum; without prejudice to his right, with regard to interest other than that which is secured by the first registration, to effect specific registrations, which shall be effective as of the same date and which shall create a mortgage.
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Article 1185
If the deed, covering the mortgage, contains a specific stipulation which limits the debtor's authority, either to lease out the encumbered asset without the creditor's consent, or with regard to the manner in which, or regarding the time period during which such may be leased, or in relation to the advance payment of the rent, such a stipulation shall not only be binding between the parties, but may also be enforced upon the lessee by the creditor who has registered such stipulation in the public registers. This shall not prejudice the provisions of article 1341, which, in the event that there are grounds therefor, may be invoked by all creditors, regardless of whether or not there are any limitations stipulated in the lease agreement or advance payment.
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Article 1186
To implement the registration, the creditor, shall, either personally or through a third party, submit to the registrar of mortgages, in the location of the assets, an authentic copy of the mortgage deed, including two dockets, signed by the creditor or a third party, on which a copy of the title issued shall be noted. The dockets shall consist of the following:
- (1) a specific description of the creditor and the debtor, and information regarding the domicile, selected by the aforementioned within the scope of the office of the registrar. The registration of the assets of the deceased may be carried out on his behalf;
- (2) the date and the nature of the legal title, indicating the official by whom or before whom the deed is drawn up, or the judge who has indicated the encumbered assets, pursuant to the penultimate paragraph of article 1171;
- (3) the amount of the loan, or the estimate or the temporary and unspecified interests which are required to be secured, including the time at which the debt shall be collectable;
- (4) the description of the nature and the location of the assets over which the mortgage is created, insofar as is possible pursuant to the measurements done upon the government's authority, without prejudice to the stipulation in the second paragraph of article 1174, with respect to one tenth and ground rents;
- (5) the stipulations, which, pursuant to the previous article, the second paragraph of article 1178 and the second paragraph of article 1210 could have been agreed between the creditor and the debtor.
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Article 1187
The registrar shall keep the docket, noted on the authentic copy of the title, pursuant to which registration is required, for the purpose of registering such on the date of the filing. On the same day, he shall return, to the individual who has requested the registration, the other or second docket, at the bottom of which he shall have noted the date of the filing. If such is demanded, he shall, not later than within twenty four hours after this further inquiry, include in the other or second docket the number of the register where the registration took place. Both of these statements shall be signed by him. The registrar shall carefully keep the copies of the transfer deeds, establishment of property rights or rights of servitude, and of separation, including the dockets regarding registration, after having recorded or registered such in the respective registers designated thereto. He shall collect the above documents, in the order in which they have been registered in the register for filing documents or daily register; the dockets shall be separately registered. The documents filed for publication shall be bound and kept carefully in one volume, the documents for registration in a second volume, and the deeds for deletion and cancellation in a third volume. These volumes shall furthermore be formatted into separate book volumes, and on their spines the number of the volume and the time period that it covers shall be recorded, as well as the first and last number of the documents contained therein. The Governor General shall regulate the time periods, pursuant to which the documents, as aforementioned, shall be made into volumes. The date of filing, the volume and number of the register of filing shall be noted on each document filed.
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Article 1188
At the registration of a claim, as mentioned in article 1108, the creditors or the legatees must provide the registrar of the mortgages with the following:
- (1) an authentic copy of the claim for separation of assets;
- (2) the death certificate of the deceased, or another valid proof that the lawsuit has been filed within six months after the inheritance became available;
- (3) two dockets containing, pursuant to the requirement in article 1186 no. (4), the description of the nature and the location of the assets, beside the assets in respect of which registration is required; and the provisions in article 1187 shall apply to these dockets.
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Article 1189
The individual, who has instructed that the registration be effected, and his representatives, or those, who pursuant to an authentic deed have acquired the same right, are permitted to change the selected address in the mortgage register, provided that they choose and indicate another one in the same area, by noting it in the margin of the registration.
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Article 1190
The registration shall not be canceled for non-compliance with the above formalities, but shall be canceled in the event that the register does not contain proper descriptions of the creditor, the debtor, the debt, or the encumbered assets.
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Article 1191
The filing and the recording of a deed of transfer of property and the registration of or related assets located outside the jurisdiction of the registrar of the mortgages, shall be void. All recordings, which take place on a Sunday, shall be regarded as having taken place the following day.
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Article 1192
In the event that upon registration a domicile is not selected within the jurisdiction of the registrar of mortgages, it shall be considered, by law, that the registrar's domicile has been selected.
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Article 1193
The charges incurred in respect of the registration shall be the liability of the debtor, unless otherwise stipulated.
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Article 1194
Lawsuits against the creditors, resulting from the registration, shall be filed with the authorized judge, by means of subpoena, submitted to the creditor personally, at the most recent address, which has been selected in the register; and this shall apply notwithstanding the death, either of the creditors or of those with whom they are domiciled.
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Article 1195
Registrations shall be canceled by crossing them out (deletion) in the registers. The deletion shall take place at the expense of the debtor, upon approval of the authorized relevant parties, or pursuant to a judgment, whether passed at the highest instance, or which has acquired legal effect.
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Article 1196
In both cases, the individual who has requested the deletion shall submit an authentic deed, which authorizes the deletion, or an authentic copy of such deed or of the judgment ordering such deletion. Authentic deeds, which have been drawn up pursuant to a private deed of consent shall not be valid with regard to the deletion In the event of a dispute concerning the authority of those, who have approved the deletion, or concerning the validity of the evidence submitted, the court of justice, within whose legal jurisdiction the registration was recorded, shall pass judgment, upon a simple letter of request filed together with the relevant documents.
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Article 1197
If a deletion is not approved, inquiries shall be addressed to the judge, in whose legal jurisdiction the registration took place; in the event that the claim is subject to a dispute, which is before another judge, the demand for deletion shall be referred to the judge with whom the principal dispute is pending. However, any agreement, concluded between the creditor and debtor to file a claim with a judge stipulated by one of them in the event of a dispute, shall be complied with by them.
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Article 1198
A creditor who has a registered mortgage, shall retain his right to the encumbered immovable asset, regardless of who the holder of the title thereto is, and shall be ranked and paid pursuant to the order of registration.
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Article 1199
The creditor shall be entitled to seize and sell the encumbered immovable asset held by the third owner, upon the instruction of the debtor. The formalities with respect to legal sale and rank, contained in the legal regulations regarding civil procedures, shall be taken into account in respect of the above and the rank of the proceeds thereof, among the various creditors.
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Article 1200
The third owner may oppose the sale, if he can indicate that the original debtor still holds title to one or more immovable assets, also mortgaged to secure the same debt, which are obviously of sufficient value to cover the debt. In this regard, he may, by postponing the sale of his property, demand the prior sale of the assets held by the original debtor which are also mortgaged.
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Article 1201
In the event that a mortgage is created over an immovable asset and one or more parts thereof have been transferred to third owners, the creditor shall have the authority to apply his right in its entirety to the encumbered asset, or to part thereof, as he deems advisable or sufficient, in the manner as if the encumbered asset is still in the possession of the debtor in its undivided state.
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Article 1202
The third owner, who, either by forced sale, or voluntarily, has settled the debt, is authorized, pursuant to the law, to take over the rights of the creditor, and after deducting his share in proportion to the collective value of the encumbered assets, to apply the subsequent mortgage rights for this loan to other encumbered assets, or parts thereof.
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Article 1203
In the instances mentioned in the two previous articles, the registration of the mortgage shall only be deleted in respect of the asset or part thereof which has been used to settle the debt, or which the third owner has used to settle the debt, and the mortgage on the other assets shall not be deleted until the third party has settled the debt or the assets have been sold, and according to article 1201, has exercised his rights or has approved the deletion. To secure his right, the subrogated creditor is required to demand registration thereof in the public registers, by displaying an authentic deed evidencing the subrogation.
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Article 1204
The third owner shall always be entitled, until the time of allotment, to prevent the sale of the encumbered assets in his possession, by settling the registered debt, together with interest in accordance with article 1184, and the costs incurred.
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Article 1205
The proceeds of the encumbered assets from forced sale which are in excess of the mortgage and costs incurred, shall be given to the third owner.
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Article 1206
The rights of servitude and other property rights, whether to the disadvantage of or for the benefit of assets due to the forced sale, which have been canceled by the transfer to a third party, shall be re-instated after the property has been allocated to another party.
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Article 1207
The depreciation to the assets which is due to the fault or negligence of the third owner, and which disadvantages the mortgage creditors, shall render to the mortgage creditors a legal claim for compensation; they cannot reclaim the charges incurred and repairs made, other than the assets' increase in value as a result of the repairs.
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Article 1208
A third owner who has settled the mortgage debt, or whose assets have been subject to a legal forced sale, shall be compensated by the debtor for safeguarding the assets.
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Article 1209
Mortgages shall be canceled due to the following:
- (1) by cancellation of the principal agreement;
- (2) by the creditors' relinquishment of the mortgage;
- (3) by legal priority.
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Article 1210
The individual who has purchased the encumbered assets, either by legal forced sale, or as a result of a voluntary sale at a stipulated price in cash, may demand that the purchased property shall be released from all mortgages, which exceed the sale price, by taking into consideration the requirements stipulated in the following articles. Such release shall however, not take place by voluntary sale, if the parties at the time of creation of the mortgage expressly agreed to such, and if such stipulation has been registered in the public registers. Such stipulation can only be made by the first mortgage creditor.
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Article 1211
In the event of voluntary sale, the claim for release shall not be made, unless the sale has taken place in public, in accordance with local customs, and before a public official; in addition, the registered creditors must be notified thereof, at least thirty days prior to the allotment, by writ, which shall be forwarded to the cities, which were selected by the creditors at the registration.
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Article 1212
The buyer who wishes to have the enjoyment of the privilege referred to in article 1210, shall be obliged to, within one month following the transfer, arrange that the legal rank for division of the purchase price be followed, in accordance with the rules stipulated in the legal regulations of Civil procedures.
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Article 1213
The deletion of the registrations arranged which are not beneficial shall be ordered in order of rank. Such registrations which are only partly beneficial, can be maintained only for that part, until the payment, at which time the creditor may collect immediately regardless of whether the debts are collectable or not. With respect to incoming debts the total amount of which has been arranged beneficially, the registrations shall be maintained, and the buyer shall be subject to the same obligations, and shall enjoy the same time limits and delays as the original debtor.
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Article 1214
At the assessment of the amount of the mortgage, a life interest shall be calculated according to the principal sum, mentioned in the deed, and in the absence thereof, it shall be twenty times the interest payable thereon; and interest from annuities or lifelong pensions shall be computed and regarded as the principal sum, in accordance with the age of the beneficiary or of the annuitant, or in accordance with the period during which payments are made thereon; all in accordance with the average value of the annuity interest, estimated by experts.
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Article 1215
Registrations of assets of guardians, conservators and husbands for the benefit of minors, persons under conservatorship, or married women, and in general, all registrations of debts resulting from conditional agreements, or of which the value is unspecified, shall continue to be charged to the sold property, to the extent that they are entirely or partly beneficially arranged, until the time at which the guardianship or the conservatorship, or the dissolution of the marriage, or the outcome of the conditional or unspecified agreement, shall be apparent or, to the extent of the purchase moneys to which the mortgage creditors are entitled; the above shall be without prejudice to the stipulation in article 337 to the extent that it relates to the guardianship and conservatorship.
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Article 1216
The sale value of the property shall be maintained by the buyer at the sale value of the parcel for which it has been secured pursuant to the previous article; unless otherwise stipulated in the conditions of the auction, he must pay the legal interest on such amount to the seller or other rightful party until the time of the final payment of the purchase price.
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Article 1217
If, however, the buyer, or his successors, abuse or neglect the parcel in such manner that could result in the reduction or loss of the security of the rightful parties, then they shall be entitled to demand in court that the unpaid purchase price shall immediately be settled and invested, whether in mortgage registrations regarding other immovable assets, or registrations in the main ledger of the national actual debt, or debentures charged to Indonesia, one and another, in the same relation and under the same stipulations, as if the purchase price has been retained by the buyer or his successors; the above shall be without prejudice to any compensation of costs, damages and interest, in the event that there are grounds therefor. In the event that the request for immediate settlement mentioned in the previous paragraph, shall be admitted, the judge shall also nominate a competent individual, who shall be responsible for the receipt of the purchase price and the investment.
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Article 1218
If, in the case of article 1215, it appears that the individual for whose benefit the registration took place, does not have anything to claim, or his claim is less than the original registered sum, then the agreement shall be canceled, and the unpaid purchase price shall be paid out, either for the benefit of the mortgage creditors, whose registrations either in their entirety or partly were not beneficially arranged, or other rightful parties.
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Article 1219
In the event that further registrations either in their entirety or partly are not beneficially arranged, and shall also be deleted, then the judge shall order in his judgment regarding order of priority that the mortgage registrar, in his official capacity, in addition to the deletion, shall note in the registers that the creditors may retain their right to the remainder of the unpaid purchase price after the final computation.
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Article 1220
In the event of the legal sale of one parcel containing several immovable assets of which one or more are not subject to any encumbrance and others are mortgaged, sold in its entirety for one price, the price of each immovable asset shall, in proportion to the total purchase price, for the benefit of the creditors registered in respect of each asset, be stipulated by the judge after having heard the testimony of experts.
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Article 1221
The officials charged with the keeping of the mortgages shall be the following:
- (a) to the extent that the assets are located in the residencies within which the seat of the courts of justice is established, the court clerks within such court;
- (b) to the extent that the assets are located elsewhere, the secretaries of the residencies, or other such officials, as shall be appointed by the Governor General. Each residency has a place of safekeeping, the boundaries of which shall be stipulated by those of the residency and which shall be named "circle of safe keeping". The Governor General shall, however, be authorized, where local customs permit, to bring in more than one residency, either in its entirety or partly, to the same circle of safekeeping.
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Article 1222
Without prejudice to the obligations imposed by this title upon the registrars of mortgages, they must also keep the registers and the notations, as stipulated in the legal regulations regarding the publication of deeds of transfer of property, of establishment of property rights and of estate separation.
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Article 1223
The registrars of the mortgages shall not be permitted to execute their duties other than in place designated by government for such purpose. Registers and other documents belonging to such office of safekeeping may not be removed unless upon the order of a judge.
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Article 1224
The registrars of the mortgages must make the registers available for inspection by any individual who wishes to view them, together with the deeds recorded for publication, and must deliver copies of such deeds, including the registrations and notations, as well as a statement in the event that there are none.
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Article 1225
They shall be responsible for loss resulting from the following:
- (1) their negligence connected with keeping the documents submitted and the required timely and accurate recordings and registrations;
- (2) their failure to mention in their statement more than one registration, unless in this last instance, the mishap occurred due to incomplete information, for which they cannot be held responsible;
- (3) deletions, carried out without submission to him of the documents mentioned in article 1196.
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Article 1226
The immovable asset, in respect of which the registrar in his statement, has failed to mention one or more registered encumbrances, shall not be released from such encumbrances; without prejudice to the responsibility of the registrar towards the individual who requested the statement in which the mistake occurred, and without prejudice to the claim filed by the registrar against the creditors, who have enjoyed payment which was not owed.
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