REVIEW OF ISLAMIC LAW AND THE CIVIL CODE ON DEBTS AND RECEIVABLES USING COLLATERAL

Abstract

Pawning is a category of debt-receivable agreement, where for the trust of the person who owes the debt, the debtor pawns his goods as collateral for the debt. This practice is carried out without any written agreement but only verbal agreement and based on mutual trust. This research answers the questions stated in the problem formulation, namely: How is Islamic Law and the Civil Code reviewed regarding debts and receivables using collateral? The research results show that according to Islamic law, in Islamic law, the definition of pawning is similar to the Civil Code, that pawning is a guarantee resulting from debts and receivables. Islam allows pawning based on arguments originating from the Koran, Sunnah and ijma'. In Islamic law and civil law in Indonesia, collateral can be used in receivables or debt transactions. The Civil Code also explains that this practice is not valid because the goods used as collateral must be tangible movable objects and intangible movable objects.