NEWSLETTER-2017

243 LAW OF OBLIGATIONS Movable Pledge Agreement Form A Movable Pledge Agreement is defined under the Law and the Implementation Regulation as “ The agreement to be signed between the pledgor and the creditor in order to create a pledge. ” The respec- tive pledge agreement must be prepared in writing or in electronic form. The agreements prepared in written form must be executed be- fore the Movable Pledges Registry, or the signature of the parties must be notarized. The electronic form pledge agreements must be signed using electronic signatures. It is a validity requirement to clearly state the intent of the parties within the pledge agreements. Parties The pledgee under the Repealed Law was limited to the credit institutions, persons who engage in sales on credit, and cooperatives with the intent to match the merchants or tradesmen who undertake the debt with trustworthy people to avoid any problematic situation. On the other hand, the pledgee to be the party to the movable pledge is determined broadly under the Law, and merchants and tradesmen are entitled to enter into movable pledges with each other 2 . It is set out under the Implementation Regulation that the pledgee is to be deter- mined among credit institutions, merchants or tradesmen; whereas the pledgor is to be from amongst merchants, tradesmen, farmers, producer organizations, and natural and legal persons who are freelancers. The Law and the Implementation Regulation further stipulates that a valid movable pledge cannot be concluded with any other party who is not stated under the legislation. Content As per the Law and the Implementation Regulation, it is manda- tory to state under a Movable Pledge Agreement that the parties of the agreement (pledgee, pledgor or third party) and details of the parties, the subject of the underlying agreement of the pledge, i.e. , the subject 2 Başak Sit İmamoğlu, Reseach on Movable Pledges in Commercial Transactions, 2017, Ankara, p. 11.