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.
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.