<![CDATA[In the resolution of non-performing loans, one legal instrument available to the holder of a Mortgage Right is parate executie summary execution, as stipulated in Law Number 4 of 1996 concerning Mortgage Rights. This mechanism empowers the first Mortgage Right holder to sell the mortgaged asset via public auction in the event of debtor default. This study aims to analyze the resolution of non-performing loans through the parate executie mechanism regarding Mortgage Right collateral at PT Bank Perekonomian Rakyat Muliatama Dananjaya, as well as to analyze the legal protection afforded to good-faith debtors during the execution process. The study employs an empirical juridical method utilizing statutory, conceptual, and case approaches. Data were gathered through literature reviews and field research and analyzed qualitatively. The findings indicate that PT Bank Perekonomian Rakyat Muliatama Dananjaya generally resolves non-performing loans through stages such as collection efforts, persuasive communication, issuance of warning letters, negotiation, and restructuring prior to resorting to parate executie. Parate executie is treated as a measure of last resort when non-litigation resolutions fail and the debtor remains in default. This implementation is fundamentally in accordance with the provisions of Articles 6 and 20 of the Mortgage Rights Law. Legal protection for good-faith debtors is realized through preventive and repressive measures grounded in the principles of good faith, balance, legal certainty, and prudence. Nevertheless, obstacles remain, including lawsuits filed by debtors or third parties, administrative issues regarding the mortgaged asset, the potential for auction proceeds to fall below market value, and a lack of debtor understanding regarding the legal consequences of Mortgage Rights.]]>
