Turkey Updates Rules For Movable Pledges And Assignments

Turkey has updated rules related to pledges on movable assets. Notably, all future legal interests in a movable asset will now be directly covered by a pledge, together with the movable asset. If a production process is pledged together with a movable asset used in the process, the pledge will now be deemed to have been automatically established.

The Law Amending Certain Laws for Enhancing the Investment Environment number 7099 ("Omnibus Law") was published in Official Gazette number 30356 on 10 March 2018.

The Omnibus Law makes changes to The Law on Pledge on Movables in Commercial Transactions number 6750.

Notable changes under the Omnibus Law include:

• All possible future legal interests in a movable asset (such as insurance, interest, or natural products and their substitutable goods) are now directly covered by the pledge, together with the movable asset.