ABSTRAC The channeling of credit to society represents the effort the real crux of a bank in running its function as financial institution. Made of Acts No. 42 Year 1999 about Guarantee of Fiduciary this is meant to assist business activity and to give rule of law to the parties which is have importance, especially in the world of banking. Problems to check in this research is: execution of agreement of credit with guarantee of fiduciary in practice in Head Office of PT Local Development Bank East Nusa Tenggara branch Labuan Bajo and the solution for breach of contract. Approach methods the used is approach of empirical yuridis. Sources of legal materials used are primary data source in the form of interviews and observations, secondary data sources such as books and legislation. Data analysis in this research is done by holding a legal argument on inductive logic. The provision of credit by bank with guarantee of fiduciary accomplished the precautionary principle. Important factors that need to be considered to reduce the risk is confidence in the capability and capacity of debtor to repay their debt in accordance with agreement. In terms of breach of contract preventive efforts undertaken by the bank is notice of late payment and give a warning letter and repressive effort is Rescheduling, Reconditioning, Restructuring. The last effort taken is to execute guarantee of fiduciary objects through public auction or underhand sales. Key Words : Agreement Of Credit, Guarantee of Fiduciary, Breach Of Contract.
                        
                        
                        
                        
                            
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