The Interest Clause In Negotiable Instruments And Its Validity

I. Introduction

Negotiable instruments—comprising bills of exchange, promissory notes, and checks—are a type of valuable document that plays a significant role in commercial life. These instruments serve a major function in securing claims, expediting commercial transactions, and facilitating economic circulation. Under Turkish law, negotiable instruments are regulated under three separate headings—promissory notes, bills of exchange, and checks—in the Turkish Commercial Code No. 6102 (“TCC”).

One of the most important characteristics of negotiable instruments is their strict adherence to formal requirements. The absence of mandatory elements prescribed by law can directly affect the instrument’s status as a negotiable instrument. Additionally, negotiable instruments are subject to the “abstraction” principle because they contain an acknowledgment of debt independent of the underlying transaction. Thanks to these characteristics, negotiable instruments have become an important tool