Legal Consequences of Checks as Collateral in Information Technology based Funding Service Agreements for Information Technology Providers and Users

The legal issue in this paper is what are the legal consequences of checks as collateral in IT-Based Funding Service agreements for the organizing company and the user (fund recipient and fund provider). Findings regarding legal consequences are crucial for analyzing the three values that must be present in law according to Gustav Radbruch. The type of research chosen to address the problem is normative juridical research. The legal consequences for the funder are that the funder, has a legal relationship with the provider under a user agreement, and a legal relationship with the recipient of funds under a funding agreement. They are obligated to ensure through the provider that the recipient of funds, as the debtor, can pay and guarantee payment of the check used as collateral. If this is not done, the funder faces potential losses due to the recipient's non-payment of the funder's obligations. The legal consequences for the provider if the check cannot be cashed when the recipient is unable to fulfil its obligations. The legal consequences are based on the user agreement that authorizes the organizer on the basis of the granting of power of attorney by the funder to collect from the recipient of funds who is in default. This user agreement grants power with the right of substitution either in whole or in part to the Organizer to carry out all and every right owned by the Funder against the Funder including but not limited to the power to receive and assess Facility applications, disburse Facilities, receive payments, collect debts from Funders, carry out legal action against Funders, and carry out all actions deemed necessary, important and useful in the context of managing the Funder's receivables. The legal consequences show that the regulation of checks as a legal embodiment will be able to contain the value of legal certainty if the parties carry out their obligations according to the agreement made, The regulation of checks as a legal embodiment will be able to contain the value of justice, if the parties get what is their right according to the agreement made. The regulation of checks as a legal embodiment will be able to contain the value of benefit if the user agreement and funding activities can be implemented well, providing benefits not only to the funder, organizer and recipient of funds, but also providing benefits for the business activities of business actors.