NEWSLETTER-2020-metin

72 NEWSLETTER 2020 Ship Hypothéque under Turkish Law* Att. Duygu Öner Introduction Ships are suitable assets to be a subject of security, due to their economic values. Ship hypothéque is preferred as a security to a re- quired loan, especially in the financing of ship building and sale. In Turkish law, although the general provisions on pledges are regulated in Turkish Civil Code (“Civil Code”), the legislator further regulated ship hypothéque in the Turkish Commercial Code (“TCC ”), consider- ing the unique nature of ships. This article examines the provisions in the TCC regarding the ship hypothéque . Ship Mortgage as a Pledge on Movable without Transferring Possession Pursuant to Article 936 of the TCC, all ships shall be deemed as movables, whether they are registered or not. Thus, regardless of their flag or registry, provisions for movable properties are applicable to all ships if there is no special provision set forth in the TCC 1 . However, it is also regulated that certain provisions for immov- able properties shall be applicable to ships under specific exceptions. It is stated in Article 937 of the TCC that the provisions with respect to immovable properties that are regulated in the Execution and Bank- ruptcy Law (“EBL”) shall be applicable for ships in specific circum- stances. The same provision also refers to the relevant provisions of the Civil Code. Although the rule for pledges on movable assets is to transfer possession to the creditor, Article 940 of the Civil Code provides an exception to that rule. The Article states that for movables, which are * Article of May, 2020 1 Preamble of Article 936 of the TCC.