A Quick Peek on the Novation or Assignment of Leases at a Glance

Charge of Lessor in Cross-Border Financial Lease Agreements

Under Turkish law, cross-border financial lease agreements must be registered by the Association of Financial Leasing, Factoring and Financing Companies ("Association"). The same authority registers any amendment made to the prior registered leases. The Association recently changed the practice of their legal predecessors, namely, Banking Regulation and Supervision Agency ("BRSA").

Last year, the registration of "Novation and Amendment Agreements of cross-border leases", which only changed the lessor of existing registered cross-border financial lease agreements was rejected by the Association. The Association established a new practice and started seeking for the submission of those agreements with the title "Assignment, Assumption and Transfer Agreements."