NEWSLETTER-2020-metin

111 LAW OF OBLIGATIONS in writing within three months following the end of the lease agreement period that she/he has gone to court related to the lease contract, or has initiated execution or bankruptcy proceedings, the bank is obliged to release the security upon the request of the lessee. Amendment of the Rental Fee (Article 343 of the TCO) Pursuant to the Article in question, in lease contracts, making changes against the lessee is void as of July, 2020. The only excep- tion to this rule is the determination of the lease price. On the other hand, the enforcement of the mentioned provision shall not create any change in practice, since a similar regulation is included in Article 9 of Law No. 6570. Determination of the Rental Fee (Article 344 of the TCO) This provision, which determines the principles regarding the de- termination of the rental value, is a new regulation not covered under Law No. 818 nor Law No. 6570. However, some amendments have been made through Articles 56 and 59 of the Law on the Amendment of Tax Laws and Certain Laws and Statutory Decrees No. 7161 (“Law No. 7161”), after the enforcement of Law No.6217. With this amend- ment made in 2019, the expression “increase in producer price index” in the first and second paragraphs of Article 344 was amended to “change in consumer price index (“CPI”) regarding the twelve month average”. Additionally, it was concluded within the provision added to Provisional Article 2 of Law No. 6217 that the said provision stating that the change in CPI regarding the twelve month average will be taken as a basis in the lease contracts, shall be applied to the lease contracts that the tenant is a person deemed to be a merchant in the TCC or private and public entities, as well as to the renewal of other lease contracts. It can be evaluated that the CPI clause in Article 344 of the TCO shall be applied in terms of the lease agreements related to the workplace rents, where the lessee is deemed to be a merchant or private and public legal entity without waiting for the date of July 1, 2020, when considering the justification 5 of the Article. Therefore, it may be said that the relevant Article is in effect as of January 1, 2019. 5 For the justification of Law No. 7161, please see https://www2.tbmm.gov.tr/