NEWSLETTER-2020-metin

74 NEWSLETTER 2020 establish a mortgage, registration is mandatory. Thus, the registration pursuant to Article 1015 is of constituent nature. For mortgages on ships that are acquired abroad, Article 1015 of the TCC contains a specific provision. Pursuant to Article 1015(5) of the TCC, for ships that are acquired abroad, and have yet to be registered before the Turkish Ship Register or Turkish International Ship Register, an annotation as to flag certificate is deemed as regis- tration. Therefore, with an annotation regarding the mortgage on the flag certificate, the mortgage is established. When the ship is to be registered, this annotation shall be transferred to the registry, which would be self-explanatory. The creditor of the ship mortgage is also the creditor in the princi- pal relationship. On the other hand, the debtor on the mortgage deed is the ship owner who undertakes to establish a mortgage on the ship, to the benefit of the creditor. However, the debtor of the mortgage deed is not required to be the debtor in the principal relationship. The Scope of the Mortgage The TCC refers to the provisions of the Civil Code, regarding the scope of receivables under the mortgage. Pursuant to Article 1018 of the TCC, the ship is security for the receivables stated in Articles 875 and 876 of the Civil Code. The relevant provisions provide that the principal, execution costs and default interest, the capital interest and necessary costs, including the premiums, fall under the scope of the mortgage. The ship mortgage includes the appurtenances and accessories, as well as the ship itself, pursuant to the referred to provisions of the Civil Code. Regarding the degree of mortgage, provisions regarding mort- gages on immovable properties in the Civil Code shall be applicable, pursuant to Article 1017 of the TCC. In this regard, a fixed degree system is also applicable for ship mortgages. Pursuant to Article 1016(4) of the TCC, a ship mortgage based on a value in foreign currency may also be established. However, a ship