Turkish secured transactions law evolves as the Law on the Pledge over Movable Properties in Commercial Transactions which facilitates the usage of pledges on movable properties in commercial transactions enters into force on 1 January 2017.
Fatma Esra Güzeloğlu &
Abdülkadir Güzeloğlu
1 January
2017
Law No: 6750 on Pledge over
Movable Properties in Commercial Transactions (“Law”) published in the Official
Gazette dated 28 October 2016 and numbered 29871 enters into force as of 1
January 2017; abrogating the Law on Commercial Enterprise Pledge dated 21 July
1971 and numbered 1447.
Law facilitates the usage of
pledges on movable properties in commercial transactions by no longer imposing
the transfer of the physical possession of the pledged asset to the pledgee.
A pledge is established once the
pledge agreement is registered at the Registry of the Pledged Movable
Properties (the “Registry”) where the records are kept open for public. The pledge agreement must be executed either in
writing (either approved by notary or signed before a Registry Official) or in
electronic form (signed by secure electronic signature).
The law exclusively lists the movable
assets over which a pledge may be established. The list includes: receivables,
intellectual property rights, raw materials, animals, rental fees, tenancy
right, machines and equipment, vehicles, stocks, agricultural products,
commercial title and/or trade name.
For more information on Turkish collateralization scheme and commercial law, you
may contact us at info@guzeloglu.legal