Lembaga Perkredi tan Desa (LPD) i s a f inancial inst i tut ion owned by desapakraman which has special characteri st ics. The said special charac teri st ic,speci f ical ly located on the obl igat ions of LPD to desa pakraman which has aphysical nature/ sekala and al so a non -physical nature/ni skala. These caused ourcent ral government to grant exclusion on the exi stence of LPD i t sel f in Law No. 1Year 2013 regarding Micro Financial Inst i tut ion.The type of thi s research i s an appl ied normat ive legal research by t racingdocument s as primary legal material s. Thi s research used statue and conceptualapproaches.LPD i s only exi st in Bal i , therefore, LPD i s o nly become a legal subject to AdatLaw in Bal i . The said exclusion has rai sed a confusion since al l thi s t ime the legalstatus and standing of LPD in every regulat ion i s considered equal to a regularFinancial Inst i tut ion. Therefore, in order to legal ly bi nd a guarantee in a credi tt ransact ion i t must always refer to the legi slat ion in accordance wi th our posi t ivelaw.