Newsletter-21

270 NEWSLETTER 2016 The Code on Movable Pledges and Its Innovations* Att. Alper Uzun The Code on Pledges of Movables in Commercial Transactions No. 6750 (“Code”) published in the Official Gazette dated October 28th, 2016 and numbered 29871 will enter into force on January 1st, 2017. The preamble of the Code states that along with globalization, the role of Small and Medium Sized Enterprises (“SMEs”) in the world economy rises each day, that SMEs are significant elements of the economic and social development, that the Code is prepared in order to ease the access of SMEs to financial sources, in order to improve their competitive power with large enterprises, and to contribute to the development of the world economy. The Code regulates the alternative elements that could be used as a guarantee by the enterprises, while easing access to financial sources. The future assets that are planned to be obtained by the enterprises, in addition to the acquisitions of movables, are included as assets that may be pledged. It is aimed to provide publicity, and to track the pledge of movables within “the Moveable Pledge Registry.” Also, a more efficient mechanism is provided in the foreclosure of the pledge. The Law on Commercial Enterprise Pledge No. 1447 will be re- voked by the entry into force of the Code. The Purpose and the Scope The Code aims to facilitate and increase the use of pledges on movable assets as collateral, to widen the scope of movables that are subject to the pledge, to provide publicity, and to ease the access to financial sources by offering alternative foreclosure means. * Article of November 2016