NEWSLETTER-2017

241 LAW OF OBLIGATIONS Movable Pledge Agreements in Commercial Transactions* Att. Nezihe Boran Demir The secondary legislation is introduced through publication in the Official Gazette dated 31 December 2016 and numbered 29935 (3rd Repeating) and entered into force on 1 January 2017 based on the Law on Movable Pledge in Commercial Transactions (“Law”) numbered 6750 published in the Official Gazette dated 28 October 2016 and numbered 29871, and entered into force on 1 January 2017. With the innovations 1 introduced to the existing regulations regarding movable pledge, it is aim to create an alternative method, particularly for small and medium-sized enterprises, to use movable pledges as security while obtaining financing. The implementation of movable pledges in commercial transactions has gradually increased with the enactment of the Law and the secondary legislation, which lead to formalization of movable pledge practices. In this sense, the content and the validity of movable pledge agreements (“Movable Pledge Agreements”) have become significant. Applicable Regulation and Movable Pledge The secondary legislation consists of the Regulation on Establish- ment of Movable Pledges in Commercial Transactions and Exercising the Rights in the event of Default (“Implementation Regulation”), the Regulation on Appraisal of Movable Assets in Commercial Trans- actions (“Appraisal Regulation”), and the Regulation on Movable Pledges Registry. The Law and Implementation Regulation regulates, among other things , the content and the procedures and principles of * Article of July 2017 1 Alper Uzun, The Code on Movable Pledges and Its Innovations, Erdem&Erdem Newsletter, November 2016, http://www.erdem-erdem.av.tr/publications/news- letter/the-code-on-movable-pledges-and-its-innovations/ (accessed on: 20 July 2017).