The usage of the certificate of retiredment often can not be accepted by the goverment-owned commercial banks in it use as collateral to obtain the credits in bank. That because the certificate of retiredment does not have the legal force to the bank as a creditor. Method used is normative method which examines the legal issues through the study of literature or secondary data as primary data
that focus on the positive norm. There are some the goverment-owned commercial banks that can not accept the certificate of retiredment in it use as a collateral to
obtain the credits in goverment-owned commercial banks because the certificate of retiredment basically belong to the ordinary general collateral that based on a
good faith from the holder of the certificate of retiredment to pay all of the debts to creditors.