Parallel Debt And Security Agent Concepts Under Turkish Law

English law is commonly preferred by financial market participants due to well-established regulations and market practices in finance transactions such as project finance, syndicated loans, secured bond issuances. However, the legal system of our country which is a part of the continental European legal system, cannot find exact equivalents used by the English legal system, which leads to certain obstacles in Turkish practice. On the other hand, there are some alternative methods that can be adopted to make these mechanics enforceable in our legal system as well.

As an example, we can discuss the concept of security agent (Trust), which has no enforceability under Turkish law. In the case where the credit agreement is signed by more than one creditor, there is no such practice in our country's legal system where the collaterals are transferred to the security agent and solely controlled by that security agent. The concept of parallel debt is introduced as an