ERDEM-NEWSLETTER-2018-metin

67 COMMERCIAL LAW In this respect, Article 1350 of the TCC provides that the precaution- ary attachment, or executive attachment of the vessels, judicial sale of vessels, and all of its consequences including, as well as transac- tions in relation to, the enforcement proceedings are subject to the laws of the country wherein the vessel is located at the time of the enforcement. In this respect, apart from the fact that whether the vessel is foreign-flagged or Turkish-flagged, if the vessel is located within Turkish waters, Turkish law will be applicable to the arrest applica- tion, and to all stages of procedure and enforcements. Counter Security The TCC requires the applicant to provide a counter security. The amount of the security is fixed to an amount equal to Special Drawing Rights 10,000. The counter security can be provided as a cash deposit or as a Bank Guarantee Letter. Counter security is a pre-condition for the arrest application, and the court will not review the application if the counter security is not deposited. The debtor may request that the court increase the counter security amount, and the applicant may also apply to the court for reduction of the same. The TCC provides for an exemption from the requirement of counter security for the holders of maritime liens in respect of the claims for wages and other sums due to the ship’s crew in respect of their employment on the ship. Enforcement of the Arrest Order Once the arrest order is granted by the court, the claimant must apply to the enforcement office to proceed with the enforcement of the order. The application to the enforcement office must be made within three working days as of the date of the order, failing which the order will be rendered null and void. The enforcement office enforces the or- der promptly upon the application, takes the vessel under the custody by arresting the vessel. Notification that the vessel has been arrested and taken under the custody shall be served on the master of the ship or the shipowner, operator, or one of their agents. The enforcement of- fice also notifies the coast guard, harbor master, and customs authority wherein the ship lies with respect to the arrest of the vessel.