NEWSLETTER-2019-metin

212 NEWSLETTER 2019 Parallel debt is a right to claim is in addition to, but independent from, the actual loan, and is under the facility agreement, which is represented by the borrower that is owed in the amount equal to the sum of the underlying loan to the security agent. Since the amount of the parallel debt is linked to the underlying loan, in order to eliminate double payment, the amount of the parallel debt would be increased by repayment of the underlying loan or, to the contrary, would be de- creased by the same amount 9 . Legal Nature Scholars are at odds with respect to the legal nature of the parallel debt under the doctrine. As per the dominant scholarly view, which is becoming more recognised under Turkish law, the parallel debt is an abstract acknowledgement of debt 10 . According to Article 18 ( Abstract Acknowledgement of Debt ) of the Code of Obligations, even if an ac- knowledgement of a debt does not refer to a cause, such debt would be valid. As such, acknowledgment of a debt to the security agent without establishing any grounds would not render such debt acknowledgment void, but it would make the debt abstract 11 . The abstractness of a parallel debt acknowledgement is subject to certain criticisms, and some assert that such a debt acknowledgement is not abstract. Linking the amount of the parallel debt to the under- lying loan amount and enabling the allegation of the objections and defences arising from the underlying debt to the parallel debt remove the abstract nature of the parallel debt acknowledgement. However, to establish a bond only in terms of loan amounts, instead of their validity, would not prejudice the abstract nature of the debt acknowledgement. Moreover, there is no provision under the legislation that prevents the parties from contractually agreeing to give voice to objections and de- fences arising from the underlying debt to the parallel debt. Thus, the under this newsletter: Aksoy , p. 146 ff. 9 Aksoy , p. 100 and 101. 10 Aksoy , p. 102 ff. 11 Aksoy , p. 104.