NEWSLETTER-2019-metin

211 LAW OF OBLIGATIONS deal with the procedures of security, separately, their desire to manage the securities through one single person, to eliminate the requirements to change each security upon any change 4 in the finance provider, the borrower and the sponsors grant such security interest to a trust instead of granting those to each finance provider, separately. As per the no- tion of trust under English laws, property rights are divided in two, those being the legal property right and the economic property right. Under Turkish law, property rights may not be divided and, as well, the institution of trust has not been recognised. There are two kinds of collateral under Turkish law: (i) accessory collateral and, (ii) non-accessory collateral. Accessory collateral, in contrast to non-accessory collateral, is a dependent form of security interest, where the validity of the accessory collateral depends on the validity or existence of an underlying debt 5 . Pledges over shares, bank accounts or movables, and mortgages or sureties, are types of acces- sory collaterals recognized under Turkish law and are required to be granted in favour of the lenders 6 . In this context, as a matter of Turkish law, it is not possible to grant accessory collaterals in favour of a trust instead of for finance providers. Parallel Debt In order to implement the financing in the Anglo-Saxon system, all security interests are convened in a pool and granted as security to an institution selected as the security agent for its central manage- ment 7 . In the civil law system, as a solution for the aforementioned obstacles, among other methods 8 , the parallel debt method is used. 4 Under English law, the changes to the finance providers would be performed by way of novation due to certain tax advantages. However, as a matter of Turkish law, novation of a pre-existing agreement creates a new agreement, thereby termi- nating the pre-existing agreement and thus, results in termination of any security interest that is attached to the novated loan. As such, the securities granted to the lenders of the novated loan would be removed. For details of the impacts of nova- tion over the accessory collateral : Aksoy , p. 84 ff. 5 Aksoy , p. 56 ff. 6 Aksoy , p. 57. 7 Aksoy , p. 89 ff. 8 For details of methods developed to grant the securities to the security agent (joint creditors and unauthorised representation) other than a parallel debt referred to