Real Estate Law
The Breaking, Separation, and Merging of Land

The Breaking, Separation, and Merging of Land

Background

The regulation on breaking, separation, and merging of land is contained in the Government Regulation Number 24 of 1997 on Land Registration (“GR No. 24/1997”) and the Agrarian State Minister Regulation/Head of National Land Agency Number 3 of 1997 on the Implementation of Government Regulation Number 24 of 1997 on Land Registration (“Agrarian State Minister Regulation No. 3/1997”).

I. The Breaking of Land Field

The breaking of land field is regulated in Article 48 of GR No. 24/1997 and Article 133 of Agrarian State Minister Regulation No. 3/1997.

GR No. 24/1997 and Agrarian State Minister Regulation No. 3/1997 do not mention the exact meaning of breaking of land. However, under the provision in the Article 48 paragraph (1) of GR No. 24/1997, it can be concluded that the breaking of land is the breaking of one land which has been registered into some area of land as requested by the right holder.

The Requirements for Breaking of Land, as follows:

Shall be in accordance with the applicable spatial plan and shall not cause non implementation of the law and regulation.
For its registration, each land is granted a new right number and created a measurement letter, a book of land and a new certificate, as a substitute of the previous right number, measurement letter, land book, and certificate. The previous measurement letter, book of land, and certificate of land right is not longer valid.
If the land right concerned is encumbered by mortgage, and/or other registered encumbrance, the breaking of land is implemented after obtaining the written approval from mortgage holder or other parties who is authorized to approve the removal of the encumbrance.
In implementating the breaking of land, as long as it is related to agricultural land, it shall note the provision of minimum limit in accordance with prevailing laws and regulation.
The application of the breaking of land that has been registered, is filed by the right holder or their proxy with the statement of breaking interest and attaching the following:
Certificate of right of land concerned;
The applicant identity;
Written approval of mortgage holder, if the land right concerned is encumbered through mortgage.

The Legal Consequence of the Breaking of Land Field [Note: ini maksudnya judul atau apa ya?]

The legal consequence of breaking of land is each part of land is a new unit of area of land with the equal legal status to the previous area of land.

II. The Separation of Land
The separation of land is regulated in the Article 49 of GR No.24/1997 and Article 134 of Agrarian State Minister Regulation No. 3/1997.

GR No. 24/1997 and Agrarian State Minister Regulation No. 3/1997 do not mention the exact meaning of separation of land. However, under the provision in the Article 49 paragraph (1) of GR No. 24/1997, it can be concluded that separation of land is the separation of one land that has been registered into a part or some parts as requested by the right holder.

The Requirements for Separation of Land Field, as follows:

1. For the registration, it is granted a right number and created its measurement letter, book of land and a separate certificate.

2. On the registration map, land register, measurement letter, book of land and certificate of land is recorded a note on separation of land.

3. The record of mortgage and other encumbrance that exists on the master book of land and master certificate of land, is recorded on a separate book of land and certificate of land.

4. The attachments that should be made in the separation of land are:

a. The master certificate of land right,

b. The applicant identity,

c. The written approval from mortgage holder, if the right of land is encumbered by mortgage.

d. A written power of attorney if the application is not filed by the right holder.

The Legal Consequence of Separation of Land

1. The equality of legal status between area of land or areas of land that are separated from its master area of land.

2. In the matter of separation of vast area of land, which is taken a part of their land to become a new unit of new area of land, the master area of land is still existed and its identity does not change, except for its width and limit.

III. The Merging of Land

The merging of land is regulated in the Article 50 of GR No. 24/1997 and Article 135 of Agrarian State Minister Regulation No. 3/1997.

GR No. 24/1997 and Agrarian State Minister Regulation No. 3/1997 do not mention the exact meaning of merging of land. However, under the provision in the Article 50 paragraph (1) of GR No. 24/1997, it can be concluded that the merging of land is the merging of two or more land that has been registered and its located is adjacent, and all of them is for and on behalf of the same owner, so that it becomes a new unit as requested by the right holder.

The Requirements for Merger of Land, as follows:

1. All of land unit are owned by the same owner and has the same term.

2. For the registration, it is granted the right number and created the new measurement letter, book of land, and certificate.

3. The registration is performed with statement that the measurement letter, book of land, and certificate of land that has been merged is no longer valid.

4. Creating the new measurement letter, book of land and new certificate for merged land.

5. The attachments that must be made in the merging of land are:

a. The certificates of land that will be merged,

b. The applicant identity.

6. May be performed if there is no record of mortgage or other encumbrance over the right of land that will be merged.

Legal Consequence of Merging of Land

The legal consequence of merging of land is the equatlity of legal status of the land as a result of merger with the status of merged land.

Alsha Alexandra Kartika

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Legal Aspect of the Grant of Right to Build (“Hak Guna Bangunan/ HGB”) or Right of Use (“Hak Pakai”) Over the Right of Ownership Land

Legal Aspect of the Grant of Right to Build (“Hak Guna Bangunan/ HGB”) or Right of Use (“Hak Pakai”) Over the Right of Ownership Land

Under Article 35 paragraph (1) of Law Number 5 of 1960 on the Principle Provisions of Agrarian (“Agrarian Law”), it is stated as follows:

“Right to Build is right to establish and to have buildings over land that is not his own, with a maximum period of 30 years.”

Right to build (“HGB”) may be extended with a maximum period of 20 years as a request from right’s holder and bearing in mind the need and state of buildings. Subject who can be the holder of HGB is an Indonesian citizen or legal entity that is established under Indonesian law and domiciled in Indonesia. Legal entity is an institution that is given a status as legal entity, such as the Limited Liability Company, Cooperative, the Association of Unit Owners and Occupants of the Condominium, and the Foundation.

According to the Government Regulation of Republic of Indonesia Number 40 of 1996 on Right to Cultivate, Right to Build, and Right of Use Over Land (“GR No. 40/1996”), the granting of HGB over a right of ownership is performed by the holder of right of ownership through a deed made by Land Conveyancing Officer (“Pejabat Pembuat Akta Tanah/ PPAT”). The granting of HGB over a Right of Ownership is made by an agreement between the holder of Right of Ownership and the prospective holder of HGB which is stated in the deed that is made by PPAT. The granting of HGB over a right of ownership shall be registered at the Land Office (Kantor Pertanahan). The period of HGB that is issued over the right of ownership is maximum 30 (thirty) years and may be renewed with the new provision of HGB based on the agreement that is implemented on the deed which is made by PPAT and the respective right to build shall be registered in the local land office (kantor pertanahan setempat).

Under Article 41 of Agrarian Law, it is stated as follows:

“Right of Use is the right to use and/or collect the results of the land that is directly controlled by the State or land owned by others, who gives the authority and duties which is specified in the decision by the competent official or in an agreement with the owner of the land, which is not a lease agreement or the agreement to cultivate a land, all things that are not contrary to the spirit and provisions of this law.”

The granting of Right of Use over Right of Ownership is performed by the holder of Right of Ownership through a deed made by Land Conveyancing Officer (“Pejabat Pembuat Akta Tanah/ PPAT”). The granting of right of use over the right of ownership shall be registered on the land book in the Land Office. The right of use over the right of ownership also binds the third party since it is registered. The period of the right of use over the right of ownership is maximum 25 (twenty five) years and it can not be extended. Right of use over the right of ownership may be renewed with the new provision of right of use based on an agreement between the holder of right of use and the holder of right of ownership, as implemented on the deed which is made by PPAT and shall be registered on the local land office.

Alsha Alexandra Kartika

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An Overview on Bankruptcy and Community Property

An Overview on Bankruptcy and Community Property

Bankruptcy is considered to be a legal process under the United States federal law to help the debt stricken consumers to discharge the debts. Bankruptcy is considered to be the last resort of the debt relief program. However, community property is the marital right bestowed by the state law. There is an intermingling relation between the federal bankruptcy law and state community property law. But some complicated legal issues emerge when the married couples in a community property state plan to file bankruptcy.

Know about community property states:

Each state in the US is required to determine whether to follow community property law. In January 2011, almost nine states are following community property law and it includes Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. In Alaska the residents have the option to follow anyone law from community property or common law property.

What are the filing options?

A married couple is eligible to file bankruptcy separately or jointly irrespective of the fact whether the couple belongs to community property states. Both the spouses should file bankruptcy at the same time but they should file separately. The bankruptcy court will not compel the married couple to file jointly but filing separately can leave an effect on community property and community debts.

What is joint filing?

It will be easier to manage the legal issues when the spouses file jointly in a community property state. If a couple file jointly then their debts will be included in the bankruptcy proceeding regardless of the fact that the debts or property are separate or community. When both the spouses file jointly then all marital debts and property will be included.

What is Separate Filing?

A spouse who’s planning to file bankruptcy separately might undergo legal complications. Filing bankruptcy can have an effect on spouse’s separate property and separate debts. If your spouse files separate bankruptcy then it’ll not have an impact on your debt or property if you are a non filer. Therefore, your property will not be exposed to risk of liquidation and your debts will not be discharged as well. In a separate filing, your community property and community debts will be included in bankruptcy although your spouse might not be involved in the filing. Therefore, the community property can be liquidated and all community debts can be discharge.

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Summary of Minister of Public Housing Regulation Number 06/PERMEN/M/2009 on the Delegation Of Authority To Grant Business Licenses On Housing Sector in order to Implement One Door Integrated Service in the Field Of Investment to the Chairman of Capital Investment Coordinating Board (“Regulation No. 6”)

Summary of Minister of Public Housing Regulation Number 06/PERMEN/M/2009 on the Delegation Of Authority To Grant Business Licenses On Housing Sector in order to Implement One Door Integrated Service in the Field Of Investment to the Chairman of Capital Investment Coordinating Board (“Regulation No. 6”)

Background

The purpose of the issuance of Regulation No. 6 is to implement the provisions of Article 7 paragraph (2) and paragraph (3) of Presidential Regulation of the Republic Indonesia Number 27 of 2009 on One Stop Integrated Services.

Contents of Regulation No. 06

Government delegates the authority to grant an operating license in housing investments to the Chairman of Capital Investment Coordinating Board with the right of substitution (Article 1 paragraph (1) of Regulation No. 06). The Chairman of Capital Investment Coordinating Board issues business license for and on behalf of the Minister in charge of public housing matter (Article 2 of Regulation No. 06).

The authority that is delegated to the Chairman of Capital Investment Coordinating Board mentioned in Article 1 paragraph (2) of Regulation No. 06 is as follows:

housing business with foreign investment;
Housing business that is within the authority of the government
Under Article 3 of Regulation No. 06, it is regulated that the tasks of the Chairman of Capital Investment Coordinating Board in order to implement the provisions of Article 1 and Article 2 Regulation No. 06 are the following:

Rely on the List Of Closed Business and Opened Business Field with the requirement for capital investment and licensing issued by the Minister in charge of public housing matter;
In the implementation of the grant of license as set out in Article 1 and Article 2, if necessary, for further technical explanation, may contact Echelon I of Ministry of Public Housing;
Submit copy of business license issued to the Minister in charge of public housing matter;
Submit a report at least once a year to the Minister in charge of public housing.

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Verification of Old Rights on  Land Registration

Verification of Old Rights on Land Registration

Article 24 Paragraph (1) of the Government Regulation Number 24 of 1997 on Land Registration (“GR No. 24/1997”) regulates that, for purposes of land registration which comes from the conversion of old rights, are proven by the evidence of existence of such rights in the form of written evidence, witness testimony and or the relevant statement that the level of its truth by Adjudication Committee on systematic land registration or by the Chief of the Land Office on sporadic land registration, are considered proper for right registration requirement, right holder and others people’s rights that is attached to them.

The application must be attached with the evidence of ownership/original document proving the existence of the related rights. Those evidences can be in the form of:

1. grosse certificate of eigendom right which is issued under Overschrijvings Ordonatie (S.1834-27), which had been given notes, that the related rights of eigendom was converted into ownership right.

2. grosse certificate of eigendom rights which was issued under Overschrijvings Ordonatie (S.1834-27) since the enactment of Law Number 5 of 1960 on Principle Provisions of Agrarian (“Agrarian Law”) until the date of land registration is conducted based on the Government Regulation Number 10 of 1961 within the respective area; or

3. letter of evidence of ownership right which was issued under the relevant Swapraja (autonomous region) Regulation; or

4. certificate of ownership which was issued by the Regulation of Minister of Agrarian Number 9 of 1959; or

5. certificate of ownership right from the authorized officer, either before or since the enactment of Agrarian Law, which is not followed by the obligation to register the given rights, but it has fulfilled all the obligation which mentioned in it; or

6. the private deed of transfer of rights that was given mark of testimony by Adat Chief/Head of the Village/Kelurahan which was made before this enactment of this Government Regulation (GR No. 24/1997); or

7. deed of transfer of land right which was made by PPAT, of which land has never been recorded; or

8. deed of waqaf oath/letter of waqaf oath which was made before or since the implementation of the Government Regulation Number 28 of 1977; or

9. the minutes of the auction which was made by an authorized Auction Officer, of which land has not been recorded; or

10. the appointment letter or the purchase of land plot for replacement of land that was taken by Government or Local Government; or

11. petuk Tax on land/Landrente, girik, pipil, kekitir and Verponding Indonesia prior to the enactment of Government Regulation Number 10 of 1961; or

12. an information letter of land history which has been made by the Land and Building Tax Service Office; or

13. the other form of any written evidence with any other name as also referred in Article II, VI and VII convertible provisions of Agrarian Law.

If, the written evidence of the land ownership is not complete or no is longer available, the verification of ownership shall be performed with the witness’s testimony or statement considered as reliable in the opinion of Adjudication Committee or the Head of Land Office. What is meant by the witness is a person who is competent to give testimony and knows about that ownership of land.

In the condition of the unavailability of evidence instruments as mentioned above, then Article 24 of paragraph (2) of GR. No. 24/1997, provide a solution by replacing the unavailability of the evidence of land ownership with the evidence of physical control for a period of 20 (twenty) years or more in a row by the applicant and its predecessors, with the following conditions:

a. that the possession and the usage of the related land was conducted explicitly and in a good faith for 20 years or more in a row.

b. that the fact of the possession and the usage of land is so long as there is no claim and, therefore it is considered to be recognized and justified by the relevant adat community or village/kelurahan;

c. that those things are strengthened by the testimony of people who is trustworthy;

d. that it has been given the opportunity for other party to file an objection though the announcement;

e. that has been conducted a research on the truth of the issues as mentioned above;

f. that finally the conclusions on the status of land and its right holder is formulated in a decision of recognition of related right by Adjudication Committee on systematic land registration and by Chief of the Land Office on sporadic land Registration.

The provision of Article 76 paragraph (3) of the Regulations of State Minister of Agrarian/ Head of National Land Board Number 3 of 1997 on the Implementation of Government Regulation Number 24 of 1997 on Land Registration (“Regulation of State Minister of Agrarian No. 3/1997”) regulates further about the evidences of the land ownership which is not available, as stated in Article 24 paragraph (2) of GR No. 24/1997.

The application must be submitted with the following attachments:

1.) statement letter from the applicant stating the following matters:

a. that the applicant has clearly possessed the relevant land for 20 years or more in a row, or has obtained its possession from party or others parties which have possessed it, so that the period of applicant and the predecessor possession is totally 20 years or more.

b. that the possession of the land has been conducted in a good faith;

c. that the possession has never been claimed and therefore it considered to be recognized and justified by the related adat community or village/kelurahan;

d. that the current land does not contain matters that do not correspond with reality, the signed statement letter which stated the willingnes to be sued in front of the court by criminal or civil claim if providing false information;

2.) Information letter from the Head of Village/Urban Village (Lurah) which usually known as Letter of Land Information and at least 2 (two) witnesses whose its testimony can be trusted, because of its function as a local traditional elders and/or residents who have lived in a long time in the rural/village where the relevant land located and, has no family relationship with the applicant until the second degree in both vertical and horizontal, which confirms the statement of the applicant in the Letter of Land Information above.

Verification of the old rights is usually conducted by groups of people who have not experienced modern administration and agrarian law. After the evidence of physical possession is attached to the application for land rights, and then conducted an investigation of the land as part of the land registration process, then it will be clear that the rights holders and the land has been registered and the holder of such rights have legal relationship with the land. As proof that the right holder is entitled to his or her land, the National Land Agent will issue a Certificate of Land. With the land registration and the issuance of the Certificate of Land, then legal certainty is achieved.

Sofie Widyana P.

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Government Regulation Number 44 of 1994 on Occupancy of Home by non Owner.

Government Regulation Number 44 of 1994 on Occupancy of Home by non Owner.

Background

The purpose of the issuance of Government Regulation Number 44 of 1994 on Occupancy of Home by Non-Owner (“GR No. 44/1994”) is made to ensure fairness and legal certainty of the owner, renters/lessee or occupant in the use of the house and to implement the provisions of Article 12 and Article 13 of Law Number 4 of 1992 on Housing and Residential (“Housing and Residential Law”). This Housing and Residential Law is revoked and replaced by Law Number 1 of 2011 on Housing and Residential Area (“Housing and Residential Area Law”). On this day, GR No.44/1994 is still valid and it has revoked the Government Regulation Number 17 of 1963 on the Principles of Implementation of Government Regulation in Lieu of Law on Permanent Housing (“GR No. 17/1963”) and Government Regulation Number 49 of 1963 on Relations of Housing Operating Lease (“GR No. 49/1963”) as amended by Government Regulation Number 55 of 1981 (“GR No. 55/1981”) and all their implementing regulations so long they regulate the lease of a house.

Contents of GR No. 44/1994.

House is a building that serves as a residence or dwelling and means of fostering family (Article 1 paragraph (3) No. 44/1994). House can be occupied through lease. Under Article 1 paragraph (3) GR No. 44/1994 it is stated that leasing is a condition where the house is occupied not by the owner based on the lease agreement. Further, leasing is based on a written agreement between the landlord and tenant. It is regulated that a house that is in a dispute shall not be leased (Article 4 paragraph (1) & (3) GR No. 44/1994).

If a house is rented out over the land that is owned by other party, then under Article 4 paragraph (1), the leasing can be performed after obtaining the consent of the owner of the land and the approval must be in writing (Article 5 paragraph (1) & (3) GR No. 44/1994). With regards to the amount of rent fees, Article 17 GR No.44/1994 states that it is based on the agreement between the owner and the tenant.

GR No. 44/1994 also regulates the occupancy of house that is made not through a lease. Under Article 14, Article 15 and Article 16, it is stated that the occupancy of house that is not through a lease must be based on a written agreement between the owner and the tenant.

The GR No. 44/1994 was enacted on the 26 December 1994.

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Adjudication of  Land Registration

Adjudication of Land Registration

Definition of adjudication based on Article 1 point 8 of Government Regulation Number 24 of 1997 on Land Registration (“GR No.24/1997″) is “activity which is performed in the process of land registration for the first time, including collection and determination of the fact of the physical data and juridical data concerning one or more objects of land registration for the purposes of its registration”. Adjudication of land registration activities are special procedures performed for granting legal status of parts of land to the actual owner.

On the implementation of systematic land registration, which is generally in large-scale and massive, then to implement it, the Head of the Land Office is assisted by the Adjudication Committee that was formed specifically for that by the Minister or appointed officer, and thus the routine duties of the land office are not disrupted. In performing its duties, the Adjudication Committee is assisted by units of juridical and administrative tasks, units of collection of juridical data and units of administrative task where their duties, the composition, and the activity are regulated by the Minister.

Essentially, adjudication duties are investigation task to examine and seek for true formal evidence, that is juridical initial data which is owned by holder of land rights, and justification task, that makes determination and ratification of evidence which is already examined.

Even though, the actual duty of adjudication is actually a task of judicial institution that is to give a decision or judgment., but in the land registration, the adjudication duty is given to the government as an executive.

The adjudication of land registration activities, if managed seriously will support the acceleration of land registration and to ensure the legal certainty.

Sofie Widyana P.

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The Legal Status of Parking Space Under Condominium Law

The Legal Status of Parking Space Under Condominium Law

Condominium is a multilevel building which is built in an area that is divided into sections which are structured functionally, whether horizontally or vertically that constitutes as units in which each can be owned and used separate
ly, mainly for housing complemented with common equipment (bagian bersama), common facility (benda bersama) and common land (tanah bersama). Condominium is regulated in the Law Number 20 of 2011 on Condominium (“Law No. 20/2011”).

Land on where the building of Condominium stands is a common land. According to the law, common land is a piece of land used under an undivided common right, which is a Condominium building over it, determined in accordance with the building license.

According to Article 1 point 5 and 6 of Law no. 20/2011 common equipment is part of Condominium that is undividedly owned for common use, in a unified function of a Condominium. The examples of these are foundation, column, wall, floor, block, roof, stair, pipes, electricity system, gas, telecommunication and public area of a Condominium. Then, common facility is defined as a thing that does not form part of a Condominium, but jointly owned undividedly, for common use. The examples of these are park, landscaping, social building, religious building, playground, and parking space which is separated or integrated with the structure of Condominium building. Accordingly, based on the definitions set out above, of parking space is regarded as a common facility .

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Land Registration Activity

Land Registration Activity

Background

Definition of land registration in Government Regulation Number 24 of 1997 on Land Registration (“GR 24/1997”) constitutes perfection of scope of the land registration based on Article 19 paragraph (2) of Law Number 5 of 1960 on the Principles Provision of Agrarian (“Agrarian Law”) which includes; measurement, mapping, land records, registration and transfer of right of land and granting of evidence instrument of right as strong evidence.

Further provisions of land registration activities are regulated in GR 24/1997, which include:

1. Land Registration for the First Time ( Opzet or Initial Registration)

Land registration for the first time is the activity of land registration for the object of land that has not been registered based on Government Regulation Number 10 of1961 (“GR 10/1961”) or GR 24/1997. Land registration for the first time is performed through land registration systematically and sporadically. Land registration systematically is defined as activity of land registration for the first time simultaneously including all object of land registration that has not been registered in area or part of area of a rural/village (Article 1 paragraph 10 GR 24/1997). While, land registration sporadically is land registration activity for the first time concerning one or some object of land registration in area or part of area of a rural/village (Article 1 point 11 GR 24/1997).

Land registration activities for the first time, include:

a. Collecting and processing of physical data

1. Preparation of base map registration;

2. Registration of land boundary areas;

3. Measurement and mapping of land areas and making registration map;

4. Preparation of land registers;

5. Preparation of letter of measurement;

b. Evidence of rights and its records, including:

1. evidence of new rights

2. evidence of old right

c. The maintenance of land registration data activities.

d. Presentation of the general register and document

e. Activity of land registration data maintenance.

2. Maintenance of Land Registration Data Activities (Bijhouding atau Maintenance)

This is the land registration activity to adjust the physical data and juridical data in maps of registration, land register, name register, letter of measurement register, land records, and certificate with the changes that happen later on (Article 1 point 12 of GR 24/1997).

Based on Article 36 of GR 24/1997, the maintenance of land registration data is performed if there is a change of physical data or juridical data of land registration object that has been registered. Physically data changes occured if there is segregation, separation, or merging of areas of land that have been registered. Juridical data changes occured for instance if there is an encumbrance or or transfer of right over of land areas that have been registered.

The relevant right holder shall register the change of physical data or juridical data to the Land Office and the district/local city to be recorded in the book of land.

Activity of maintenance of land registration data, includes:

a. Registration of transfer and imposition of rights.

1. Transfers of right through auction;

2. Transfer of right due to inheritance;

3. Transfer of right due to merger or

consolidation or merger of limited

liability companies or cooperative;

4. Imposition of right;

5. Rejection of registration transfer and

imposition of right.

b. Registration of change of other land registration data, including:

1. Extension of the period of right of land;

2. Segregation, separation, and merging

of area of land;

3. Distribution of joint right;

4. Abolishment of right of land and ownership rights of condominium units.

5. Transfer and abolishment of mortgage;

6. Changes of land registration data based

on judgment or court decision.

7. Changes of name

Sofie Widyana P.

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