NEWSLETTER-2020-metin

112 NEWSLETTER 2020 Pursuant to the third paragraph of the Article, without considering whether an agreement by the parties exists, the applicable lease price for lease contracts that are longer than five years, or are renewed after five years, shall be determined by the judge referring to the rate of increase in the producer price index, the condition of the leasehold, or comparable lease prices. In the lease year following each five years, the lease price determined by this procedure may be changed in ac- cordance with the provisions in the previous paragraphs. In the last paragraph of the Article, the principles to be taken into consideration in the determination of rental fees are included if the lease price is in foreign currency. Since there was no provision on this issue within the framework of the abrogated TCO, if the rent was in foreign currency, the parties could freely determine the increase rates within the framework of the freedom of contract principle. How- ever, with the enforcement of this provision, the lease price cannot be changed unless five years have passed, provided that the provisions of Law on the Protection of the Value of the Turkish Currency No. 1567 are reserved 6 . Prohibition of Regulation against the Lessee (Article 346 of the TCO) In accordance with Article 346 of the TCO, the lessee is not obliged to pay obligations other than the lease and subsidiary costs. In the continuation of the Article, it is regulated that the agreements that stipulate any payment of penalty in the event of delay in performance of the lease price, or that the upcoming lease costs shall be due are invalid. It can be said that the principles regarding this change, which will have an effect especially in terms of penal clause, will be under- stood by the decisions of the court of last resort. d27/2/2-1369.pdf (Access date: 27.06.2020) 6 Except for the exceptions specified in the legislation, the parties cannot determine the rental value as foreign currency in the movable and immovable leases pursu- ant to Resolution No. 32 on Protection of the Value of Turkish Currency.