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ARTICLE · 01 NOVEMBER 2016

Turkey Approves Major Changes To Pledge And Assignment Regime From January 2017

Moroglu Arseven
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A pledge will be established once the pledge agreement is filed and registered with the Pledge Registry.

TurkeyCorporate/Commercial Law
Dr. E. Seyfi Moroğlu, LL.M.
Dr. E. Seyfi Moroğlu, LL.M.
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Turkey has introduced major legislative changes to the pledge and assignment regime, which will facilitate access to finance for SMEs and boosts competitiveness. From January 2017, existing requirements for pledges on movables under the Turkish Civil Code will no longer apply to pledges granted by merchants and tradesmen, with certain limited exceptions.

The Law on Pledge on Movables in Commercial Transactions numbered 6750 ("Law") was published in Official Gazette number 29871 on 28 October 2016, entering into effect on 1 January 2017.

Under the new regime for non-possessory pledges (teslimsiz rehin), movables will be registered with the Movables Pledge Registry ("Pledge Registry"). The current issue of publicizing pledges on moveable property (aleniyet) will be eliminated.

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