Newsletter-21

272 NEWSLETTER 2016 transactions to be made with the Registry will be on-line. Thereby, the Registry will enable third parties to be informed on the situation of the pledges of an enterprise or a merchant. The provisions on moveable pledges that are obliged to be registered to other registries are undis- closed. It is ruled that within scope of the Code, these moveable assets cannot be pledged through registration with the Registry. Article 4 of the Code regulates the manner in which to execute the right of pledges. Accordingly, the right of a pledge is executed by registration of the pledge agreement with the Registry. The Code clearly states that the pledge right will be enured to the third parties upon the registration with the Registry. As it is listed in the Code, the pledge right can be established on assets, trees that provide perennial yield, intellectual property rights, feedstock, animals, any kind of acquisition and revenues, rental in- comes, tenancy rights, consumable materials, stocks, agricultural products, tradenames or business names, commercial transactions or craftsman transactions, commercial plates and commercial lines, commercial projects, movable enterprise plants, such as carriages, machines and rigs, vehicles, equipment, work tools, and etc., and any licenses and warranties which are not registered to any other registry and cannot be assumed as administrative permit. The Code enables enterprises to establish pledges on various assets, including present and future assets. Moreover, within the scope of the Code, it is pos- sible to establish a second pledge on a pledged asset. Therefore, the Code introduces a ranking system between the pledges. The guarantee established by the pledge shall be limited to the stated amount and its rank in the registry. If a rank is defined on an asset, the rank order shall be respected. If plural pledges are established without any rank order, the priority will be given to pre-established pledges. The Code enables the parties of the pledge agreement, to have the movable be valued prior to the pledge proceeding. This regula- tion states that the required qualifications of real and legal persons to service on valuation will be determined with a directive to be prepared by the Ministry of Customs and Trade.