The Communiqué on Amendments to the Communiqué on
Covered Bonds (III-59.1) was published in Official Gazette number
29508 on 20 October 2015
("Communiqué"). It was issued by
the Capital Markets Board and enters into effect on the same day.
The Communiqué enables contracting parties to unilaterally
terminate agreements about derivative financial instruments in
The Communiqué amends principles relating to derivative
instruments (Article 11, Communiqué on Covered Bonds
(III-59.1), Official Gazette number 28889, 21 January 2014).
The amendments enable contracting parties to include a provision
in agreements regarding derivative financial instruments which
allows for unilateral termination of the agreement under certain
conditions. Accordingly, the Communiqué allows parties to
include a clause which allows unilateral termination if:
The issuer fails to perform its liabilities totally or
partially and the total liabilities exceed the assets' total
value, including the derivative instrument.
The agreement becomes impossible and contrary to law within the
context of relevant legislation or significant amendments to
legislation regarding contracted principles.
Early redemption of covered bonds occurs.
The agreement is not registered in the cover register, or is
removed from the cover register for violating the agreement's
terms and conditions.
The Communiqué also allows parties to agree to add a
unilateral termination clause into an agreement which addresses
similar circumstances to those outlined above, provided the
Board's consent is received.
Please see this link for full text of the
Communiqué (only available in Turkish).
Information first published in the
MA | Gazette, a fortnightly legal update newsletter produced by
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Under Regulation (EU) No. 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories ("EMIR")...
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