NEWSLETTER-2020-metin

110 NEWSLETTER 2020 that is, by its very nature, specifically used for a temporary period, and leased for six months or less. The legal regulations with respect to residential premises and covered workplaces, which shall apply as of July, 2020, are as follows: Connected Contract (Article 340 of the TCO) Article 340 of the TCO, one of the other legal arrangements that has no equivalent in the former legislation, concerns the prohibition of linked transactions. According to the provision, with respect to residence and covered workplace leases, if the conclusion or continu- ance of a contract, without lessee’s benefit, is tied up to the lessee’s obligation that is not directly related to use of a leasehold, the contract is invalid. The invalidity mentioned here is not related to the lease agreement, but only relates to the linked contract. The aim of this legal arrangement is to prevent the lessee from undertaking any obligations other than rent, by abusing the need to create a lease 3 . Assurance by the Lessee (Article 342 of the TCO) Assurance, which is called “deposit” in practice, is regulated un- der Article 342 of the TCO. There was no such provision within the framework of the abrogated TCO. However, the provisions regarding the deposit that were added to the lease agreements were considered to be valid in the precedents of the Supreme Court 4 . Within the scope of the article that entered into force in July, 2020, if the lessee is obliged to provide assurance through the contract, the assurance is limited to a maximum three-month lease cost. If cash or negotiable papers are decided to be provided as security, the lessee shall pay the money into a forward savings account so as not to be withdrawn without approval of the lessor, or deposit negotiable papers in the bank. The bank may release such assurance only through the consent of both parties, upon finalization of the execution proceedings or decision of the court. Moreover, if the lessor did not notify the bank 3 Yavuz , p.265. 4 3th Chamber of the Court of Cassation No. E. 2007/3101, K. 2007/3517, 13.03.2007; 3th Chamber of the Court of Cassation, E. 2019/2519, K. 2019/10687, 26.12.2019.