Newsletter on The Amendments to The Law on Movable Property Pledge in Commercial Transactions
The following amendments were made to Law on Movable Property Pledge in Commercial Transactions numbered 6750 and dated 20 October 2016 (“Law“) to be effective as of 3 February 2021.
Under paragraph 2 of article 5 of the Law it was regulated that if a pledge was established an on entire commercial and tradesman enterprise, then all kinds of assets allocated to the operation of the enterprise, at the time of establishment of the pledge would be considered as pledged.
With the new amendment, it has been regulated that in addition to the above regulation, if a significant movable asset group of an enterprise is pledged as a whole, then all of the assets included in this group will be considered as pledged. Also, with the regulation added to the paragraph 2 of article 5 of the Law, it is not obligatory to include the distinguishing characteristics of the asset subject to the pledge such as serial number, brand, year of manufacture, chassis number, document serial number on the pledge contract if a significant movable asset group of the enterprise is pledged as a whole.
The amendments entered into force on 3 February 2021 which is the publication date of the Official Gazette.
 The relevant amendment was made with the Law on Technology Development Zones and the Law Amending Some Laws published in the Official Gazette No. 31384 dated February 3, 2021.