The Role of Notary and Land Deed Official in Providing Legal Protection Based on Banking Prudential Principles: A Case Study in Bali

The issue regarding a bad credit dispute resulted in a lawsuit for unlawful acts against the bank and the notary, even though the collateral had been transferred through the foreclosed collateral mechanism and a legitimate sale and purchase transaction. This article aims to analyze the role of Notaries and Land Deed Officials in supporting the implementation of bank prudential principles in credit agreements and the binding of Mortgage Rights over land at the Rural Credit Bank of Saraswati Ekabumi Corporation, Badung Regency, Bali. The method used is an empirical legal method with a sociological approach, through in-depth interviews and analysis of two foreclosed collateral cases and court decisions. The results show that Notaries and Land Deed Officials carry out six procedural stages of binding Mortgage Rights that are consistent with the normative role according to the Mortgage Law, Notarial Law, and the Government Regulation on Land Deed Officials. The Deed of Grant of Mortgage Rights and the Deed of Sale and Purchase that were made were proven to have executorial power and perfect proof, allowing the bank to win the case at two levels of court. Finally, the article concludes that the role of Notaries and Land Deed Officials is determinative, not merely administrative, because it serves as an instrument of preventive and repressive legal protection in mitigating credit risk.