ARTICLE
9 February 2021

New Pledge Structure In Commercial Movable Pledge

EA
Esin Attorney Partnership

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Esin Attorney Partnership, a member firm of Baker & McKenzie International, has long been a leading provider of legal services in the Turkish market. We have a total of nearly 140 staff, including over 90 lawyers, serving some of the largest Turkish and multinational corporations. Our clients benefit from on-the-ground assistance that reflects a deep understanding of the country's legal, regulatory and commercial practices, while also having access to the full-service, international and foreign law advice of the world's leading global law firm. We help our clients capture and optimize opportunities in Turkey's dynamic market, including the key growth areas of mergers and acquisitions, infrastructure development, private equity and real estate. In addition, we are one of the few firms that can offer services in areas such as compliance, tax, employment, and competition law — vital for companies doing business in Turkey.
The new structure introduced to the Law No. 6750 on Movable Pledges in Commercial Transactions published in the Official Gazette No. 29871 dated October 28, 2016.
Turkey Corporate/Commercial Law

What's New?

The new structure introduced to the Law No. 6750 on Movable Pledges in Commercial Transactions published in the Official Gazette No. 29871 dated October 28, 2016 ("Commercial Movable Pledge Law") through the Law Amending Certain Laws published in the Official Gazette No. 31384 dated February 3, 2021.

Recent Development

The amendment provides that an enterprise can establish a commercial movable pledge on a certain movable asset group as a whole. In cases where a certain movable asset group is pledged as a whole, all of the assets included in this group will be considered as pledged. In this regard, in commercial movable pledge agreements, parties will not be required to specify the distinctive characteristics of the assets included in the movable asset group over which the pledge is established.

Conclusion

The new amendment to the Commercial Movable Pledge Law preserves the pace of commercial life from slowing down and prevents the commercial movable pledge from being affected by the changes of assets in a certain asset group.  

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