LETTERS OF VALUE A. General description of securities 1. Definition To know the meaning of the word or understanding of securities, we can conclude from several articles in the legislation concerning securities. From the wording, it can be concluded that the meaning of the word securities is letters that have the nature and value of cash and can be exchanged for cash. The exchangeability with cash for a securities is mainly due to the main function to be traded and can be transferred from one hand to another (negotiable). In a security, a certain amount is stated and the right or amount of money follows the letter. This means that the right and the letter/paper are intertwined with each other, or in other words, the letter contains a right that cannot be separated. The holder of a security can in its own name demand payment from the drawer, provided that the security was obtained honestly and in good faith. In this case the honest holder does not need to care whether the previous holder there is a defect or not in its acquisition. The nature of securities is that they can be traded and can be transferred to other people. This is due to the clauses in the securities that are deliberately held with the aim that the legal position of the holder of the letter can be transferred to another person who accepts the transfer. According to the law, there are two types of clauses for securities, namely: - Clause "on bearer" (to bearer/aantoonder) - Clause "on behalf of" (to order/aan order) Transferring a securities with a clause on the bearer, the holder can transfer it only by handing over the letter just like that. As for a securities with a clause on behalf (surat unjuk), the transfer is carried out by means of endorsement and delivery of the securities. 2. Surrender The surrender of a security means that all rights to the claim mentioned in the security are transferred to the new holder. Every honest holder of a security will have his rights protected by law. This means that the holder of a security who obtained it with a valid legal title and obtained it honestly in good faith, then he can defend his rights to the bills stated in the security against anyone, even if it later turns out that the security was obtained by the last holder illegally (eg stealing, cheating, collecting on the street), the holder of the honest / good faith security, will still be protected by law. We can see the protection of honest holders in the law, for example for money orders regulated in Article 115 of the KUHD. The article states that whoever is the holder of a bill of
exchange, he must also be considered as the legal holder, if he can prove his right by showing an unbroken series of all endorsements of the bill of exchange. Even in paragraph 3 of the article it is further stated that a legal holder of a bill of exchange, he is not obliged to give back his bill of exchange to the person who lost the bill of exchange, unless the bill of exchange was obtained by him in bad faith or a great negligence. Likewise, for the holder of a cheque in the name of another person in which the words "or bearer" are crossed out, he is considered the rightful holder, if he can prove his right by showing an unbroken series of all endorsements of the cheque, as well as if the last endorsement is made in blank (Article 196 KUHD). Even further, it is said that for the holder of a cheque that later turns out to be from the last holder who handed over the cheque is not a legitimate holder because it was obtained from the discovery in the street, the holder of the cheque is not required to return / release it, unless the cheque was obtained in bad faith, or because of a major negligence (article 198 KUHD). 3. Endorsement Endorsement means the assignment of a letter of appointment or onderpapier by a person who is entitled / holder to another person accompanied by a statement transferring his rights to the letter written on the letter as well. The origin of the word "endorsement" is from the French language which means "a statement written on the back or back (endos) of a letter". Usually, in the daily business world in Indonesia, the endorsement on a cheque or money order is not accompanied by words stating the transfer of rights to the letter. What is usually done here is an endorsement by simply affixing the signature of the endorser on the back of the securities.