It is a desirable path for large entrepreneurs to transfer small savings to trade and industry by borrowing from people who are ready to make small investments in order to meet the high loan needs of a large enterprise.
The most robust guarantee for this is the establishment of a pledge on the immovable property of the undertaking seeking credit in favor of the receivables of small savers. However, it is practically difficult to establish a pledge on each property separately for each of the many creditors. For this reason, the regulation in Article 930 of the Turkish Civil Code has been introduced, and in order to meet a large loan requirement, the amount to be borrowed is divided into bonds, and securing these bonds with immovable pledges is specially regulated.
In these cases, there is more than one creditor against a single debtor. There is no legal relationship between the said creditors. Each of the creditors takes care of their own interests. However, it is possible to appoint a representative to ensure the liaison between the creditors and the debtor.
In practice, bond issues are made through banks, and this occurs in two ways. The bank itself appears to be the borrower of the bond, or the bank does not assume the debt, but only acts as the agent of the borrower.
Establishment of Immovable Pledge in Favor of Note Creditors
In the event that the banks issuing the bonds do not incur any debt against the creditors, the entrepreneur with the bond debt issues the bond.
By law, where the debtor of the bonds directly owns the undertaking, it is required to appoint a representative to represent the creditors and the debtor.
The authority to be appointed as the representative is the intermediary bank.
The pledge should be registered in the land registry with a single registration.
Issuance of the bond is not subject to the official form of pledge.
Establishment of Immovable Pledge in Favor of the Intermediary Bank
If the bank that issues the bond is also loaded with the debt arising from the bond, it is the bank itself that owes the bond to its creditors. The entrepreneur, on the other hand, borrows for the amount of the bonds issued to the bank.
Our law firm in Antalya provides services to foreigners and specializes in legal matters related to the establishment of immovable pledges under Article 930 of the Turkish Civil Code. This legal provision facilitates the transfer of small savings to trade and industry, enabling large enterprises to meet their substantial loan requirements by borrowing from individuals willing to make small investments. In practice, bonds are often issued through banks, with two possible scenarios: either the bank becomes the borrower of the bond, or it acts solely as an agent for the borrower.
In cases where multiple creditors are involved, a representative can be appointed to facilitate communication between creditors and the debtor. This representative is typically the intermediary bank. The establishment of an immovable pledge is essential, and it should be registered in the land registry with a single registration, although it is not subject to the official form of pledge. Our firm plays a crucial role in guiding clients through these complex legal processes, ensuring the protection of both creditors and debtors. For all your legal needs in Antalya, trust our experienced team of antalya lawyer.
Source : wikipedia
