Suretyship And Similar Procedures In The Turkish Commercial Code

The new Turkish Commercial Code ("TCC") that entered into force on 07/01/2012 brought about some changes in terms of a number of debt-creating transactions in the day-to-day business life. Although the TCC applies to a majority of commercial transactions, those changes have also affected the commercial transactions to a considerable extent since the provisions of the TCC apply to debt relations not governed in the TCC. With the introduction of the new TCC, conditions as to form and validity of surety and similar procedures concerning other forms of personal warranty have been considerably aggravated.

Suretyship is an accessory agreement by which a person (the surety) binds himself for another already bound (the debtor) as for his debt and accepts to be bound by the debt owed by the debtor to the creditor if and when the circumstances require so. Since the surety assumes a specific liability with no benefit in return under a suretyship agreement, the validity of a