Legal Protection for Debtors in Standard Contracts Related to the Application of the “Cross Default†Clause in Credit

The background of this research is the issue of the cross-default agreement between bank and customers. The clauses in the Bank Credit Agreement are very varied, one of which is: the “event of default†clause is a clause that gives the bank the right to unilaterally terminate credit for events determined by the bank and at the same time collect the remaining credit principal: the “event of default†elements contained in the cross default clause, such as the debtor receiving credit from several lending institutions separately in order to obtain the full amount of credit needs. This means that there are several bilateral credit agreements between the debtor and each of the crediting institutions. By law, each credit agreement is not related to each other except if in each credit agreement a cross default clause is included. The method used in this study is a normative legal research method/descriptive analytical approach. The legal strength of the cross-default agreement is weak because it is made on the basis of an imbalance of legal subjects and is indicated as having no good intentions. There is indeed no coercion, which means there is good faith, but the delivery of standard contracts with standard clauses and exoneration clauses without detailed explanation of the legal consequences is a form of denial of good faith.