<![CDATA[The transfer of a fiduciary collateral object without the fiduciary recipient’s written consent may harm the creditor and create legal liability for the debtor. This study analyzes the legal consequences of transferring fiduciary collateral without creditor approval and evaluates the judicial reasoning in Pasuruan District Court Decision Number 127/Pid.B/2012/PN.PSR. It employs normative legal research using statutory and case approaches. Primary, secondary, and tertiary legal materials were collected through a literature review and qualitatively analyzed through deductive reasoning. The findings demonstrate that an unauthorized transfer creates civil liability in the form of breach of contract and criminal liability under Article 36 in conjunction with Article 23(2) of Law Number 42 of 1999 concerning Fiduciary Security. The court’s reasoning in finding the defendant guilty was consistent with the established facts and mutually supporting evidence. Nevertheless, returning the vehicle to the defendant without expressly confirming the continuing fiduciary encumbrance creates legal uncertainty for the creditor. The return of evidence should not be interpreted as extinguishing the registered fiduciary right while the secured debt remains unpaid or the fiduciary recipient has not released its right.]]>
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