NEWSLETTER-2017

207 CAPITAL MARKETS LAW issuances of land and properties owned by TOKİ, İller Bankası ( Pro- vincial Bank ) or their subsidiaries and affiliates are used for property projects. Pursuant to the new regulations under the Communique, with regard to the issuances for the urban transformation projects, if the Project is unfulfilled, or if a designated term longer than one year has lapsed, the property certificates can be redeemed at a price that is not less than the issue value ( ihraç değeri ) and, in addition to a penalty, if stated in the prospectus ( izahnname ) or the issuance document ( ihraç belgesi ). According to the final amendments, the feasibility projects for the urban transformation projects that TOKİ, İller Bankası ( Provincial Bank ), or their subsidiaries and affiliates that are guarantors for the ur- ban transformation projects, feasibility and construction improvement reports can be prepared by the relevant institution. Also, pursuant to an amendment to the Communique, the CMB can determine differ- ent standards upon application with regard to the exceptions for urban transformation projects. Default in the Project According to the Communique, if it is evident that the construc- tion project will not be completed within the term for the performance stated in the issuance document ( ihraç belgesi ), and in accordance with the principles thereunder, a feasibility report is prepared within 15 work days, and additional time is requested, provided that such period of time does not extend beyond 180 days. In the end of such period, or if no additional time is requested, if the construction project will not be completed within the term for its performance, it will be deemed as if the project has not been completed. In that case, the issuer needs to pay the redemption value ( itfa bedeli ) of the property certificates, and the penalty if stated in the issuance document ( ihraç belgesi ). According to the new amendment enacted in 2017, if the issuer does not undertake such obligation, a “property certificate holders meeting” is held, which is similar to the general assembly meeting under the Turkish Commercial Code, resolving for the Project to be