NEWSLETTER-2017

242 NEWSLETTER 2017 Movable Pledge Agreements, in detail. The Law further stipulates that the provisions of Article 939 and the following articles of the respec- tive section related to movable pledges of Turkish Civil Code No. 4721 are applicable in the cases that are not regulated under the mov- able pledges regulation. With the enactment of the Law, the Law on Commercial Enterprise Pledge numbered 1447 (“Repealed Law”) and the respective regulations have been repealed. However, the Repealed Law will continue to be applied for commercial enterprise pledges that have been established during the term of the Repealed Law. Under the Implementation Regulation, movable pledges are de- fined as “ regardless of the type of the movable asset, the situation of the pledgee or the pledgor, the quality of the debt secured with the pledge or entitlement of the transaction as a pledge by its parties, a restricted right in rem established on movable assets, including the rights of the transferee, set forth under Article 189 of the Code of Obligations num- bered 6098 regarding the transfer of receivables, with an aim to secure the repayment of a debt or performance of an obligation without the requirement to transfer the possession of the movable asset. ” A similar definition is further stated under the Law. In order for the establish- ment of movable pledges, the Law requires, among others , execution of a pledge agreement. Pursuant to the Implementation Regulation, a valid movable pledge would be established with the performance of four elements. The initial element is the existence of a receivable or a future receivable to be secured, and the other element is stated to be the presence of the intent of the parties to establish movable pledges. Such elements are the general requirements under Turkish law; there- fore, even though such elements would not be stated under the Imple- mentation Regulation, their presence would be required by law. The third element is preparation and execution of a pledge agreement and, finally, the last requirement is registration of the pledge agreement with the Movable Pledges Registry. With the registration of a pledge agreement, a movable pledge would be established.