NEWSLETTER-2020-metin

98 NEWSLETTER 2020 the ownership of the underlying capital market instruments, or their equivalents, to the guarantee provider. The contracts of guarantee where the ownership remains with the guarantee provider has been regulated under Paragraph 3 of Article 47. Accordingly, the parties shall determine the scope in which the guarantee may be used. Upon the termination of the contract of guar- antee, the guarantee taker shall return to the guarantee provider the underlying capital market instruments, or their equivalents, if he/she has used these instruments. The rights given to guarantee taker under Article 47/4 of CML Paragraph 4 of Article 47 includes a regulation that may be deemed as an exception of the lex commissoria rule, and enables the guarantee taker to receive the ownership of the pledged capital market instrument under certain circumstances, and to deduct the value of these instruments from the debts of the guarantee provider. This paragraph may be applied in cases where a receivable would be met from the guarantee (i) in case of default, or (ii) due to reasons foreseen in the law or the provisions of the contract. In these circum- stances, the guarantee taker becomes entitled to certain rights (de- pending on which party will have the ownership of such instruments) without the obligation to make any notification or warning, allow for any period, permission or approval from judicial or administrative authorities, without the obligation to fulfil any pre-condition, such as liquidation of the guarantee, through auctioning or another method. In contracts where the ownership has been assigned to the guaran- tee taker, and unless otherwise provided in the contract, the guarantee taker may sell the capital market instruments underlying the guaran- tee and meet his receivables from the sale amount, provided that this value is not below their market value, or the right to deduct the value of these instruments from the debts of the guarantee provider. In contracts where the ownership remains with the guarantee provider, the guarantee taker is entitled to sell the capital market in- struments underlying the guarantee to meet his receivables, provided