RECONSTRUCTION OF NOTARY LAW: PRECAUTIONARY PRINCIPLE IN ISSUING COVERNOTE FOR BANKING CREDIT AGREEMENTS

Abstract

This article seeks to reconstruct the law on notary positions with the precautionary principle in issuing covernote to prevent unlawful acts as a basis for credit disbursement at banks. Also, it aims to demonstrate the superiority of the regulatory framework by highlighting its relevance in a legal gap and addressing inconsistencies in practice by combining aspects - Law, Institutions, Technology, Humans, and Environment in assessing a legal reconstruction by using a doctrinal legal research method with a statutory and conceptual approach to support this; furthermore, using a multi-criteria policy approach to formulate legal

construction by involving experts in these aspects. This article concludes with the results of the revised regulations concerning notary positions, specifically the addition of Article 15, paragraph (2), letter ‘h’. This provision states that an information letter (covernote) must be created to indicate that the process is still ongoing while adhering to the precautionary principle. The implementation cannot be effectively pursued through an individual sector approach. Instead, they require the development and coordination of a comprehensive approach based on a multicriteria approach.