Loss and Cancellation of Negotiable Instruments in Turkey
The right, which is the content of the negotiable instrument in Turkish law, cannot be claimed separately from the deed to which it is attached. The holder of the deed may not be able to claim the right they have in cases of loss of the deed in these cases. This can lead to consequences such as the debtor being unfairly avoided from fulfilling their debt. A protection mechanism has been introduced by law to prevent this injustice. This mechanism is the cancellation of negotiable instruments by the court.
The link between the deed and the right to which it is attached is broken and the right in question becomes arguable regardless of the year with the cancellation of the negotiable instrument. The right is saved from being harmed with the deed.
The cancellation decision of the court about the negotiable instrument in Turkish law has consequences in favor of the debtor because the debtor who presents the canceled bill will not have to pay the creditor.
The person who can request the cancellation of the bill is the person who is the creditor of the bill. This person is the holder of the bond for bearer papers. It is the person whose name is written in the deeds written to the order or the person whose name is endorsed for promissory notes. On the registered bones it’s the person whose name is written on the bill or who has a succession relationship with it and that holds the bill is considered as creditor. These persons are authorized holders. The aforementioned persons do not have to be the last endorsed person in the bills of exchange.
The application debtors who made the payment during the application or who lost the bill while the bill is in its possession may also be eligible.
The person requesting the cancellation of the bill is not required to own the bill. People who have the possessory lien or usufruct on the bill and the people who took over the bill by restricted endorsement can also request the cancellation of the bill based on the previous information.
Sometimes there is no legal benefit for the person requesting the cancellation of the bill which means to have no right on the deed. The right on the bill to be terminated is an example for not having the legal benefit in requesting the cancellation of the negotiable instrument in Turkish law.
Antalya Lawyer and Antalya Attorney Baris Erkan Celebi and his Antalya Law Firm offer their clients legal advise on drafting, transferring, cancelling and collecting all kinds of negotiable instruments in Turkish law.