ERDEM-NEWSLETTER-2018-metin

374 NEWSLETTER 2018 amended either, and have been completely removed from the code 2 . Most likely, the solutions regarding these issues have been referred to the Regulations in the Civil Code and, instead, the above-Regulations have been given place in the Draft Law. Especially the Regulation in the second paragraph may spark considerable debate. In the event this provision enters into force, a third party’s acquisition of right on the pledged goods shall be protected; in other words, it appears that the state of security of the pledged creditor arising from its state of being a registered pledge right-owner shall end. This can trigger an entirely contradictory result from the purpose of expanding the implementa- tion of the movable pledge without delivery; thus, expanding the mer- chants’ opportunity of procuring credit, which is the main purpose of Code numbered 6750. Proceeding Article 14 of Law numbered 6750 with the side heading, “Post- Default Rights,” are currently as follows: “(1) In the event that the debts under this Code are not discharged within time, a creditor has the following recourse: (a) If he is a first-degree creditor, he can request the transfer of the property of the pledged movable under Article 24 of the Enforcement and Bankruptcy Law dated 9/6/1932 and num - bered 2004 from the enforcement office. In this instance, the enforcement office shall notify the Registry of this transfer. In the event the value of the pledged movable that is determined according to the second paragraph of Article 13 of the Law exceeds the total receivables of the first-degree creditors, the first-degree creditor and the pledger are severally liable for the distinction between and towards the other creditors . (b) He can transfer his receivable to the asset management companies that act according to Law numbered 5411. In this 2 In parallel with this, Paragraph 3 of the Article 11 that regulates the provision stating that “Pledge rights that are established on the assets that are merged or mixed have the same privilege with the state of the asset before the merger or the mix. In the event the assets are of the same degree, the moment of registry shall be taken into consideration,” has also been abolished.