NEWSLETTER-2017

244 NEWSLETTER 2017 of the debt, the amount of the debt, and the secured obligations if the secured amount is definite; otherwise, the amount to be secured by the pledge, the currency of the payment, and the maximum amount of the pledge, distinctive features of the movable assets and, finally, the party undertaken to pay the expenses arising from the registration of the pledge from the Movable Pledge Registry. In the absence of any of the aforementioned information under the agreement, the registrar will refuse to register the agreement. In cases where the maximum amount of the pledge cannot be determined, the Repealed Law prohibits the amount of the secured debt in foreign currency; however, the Law enables the parties to state whether the amount is in Turkish Liras or in foreign currency. The Law further prohibits the parties from inserting negative pledge clauses into Movable Pledge Agreements. As such, the provi- sions under Movable Pledge Agreements regarding the restrictions of the disposition right of the pledgor over the pledged movable asset, or the restrictions on the ability of the pledgor to pledge the movable asset to others, would be void. The purpose of the legislator in making available the pledged movable for further securities is to ensure the continuity of the production of the asset and service of the pledgor. The movable pledge would also cover the integral parts of the pledged movable asset. However, the parties must agree whether the pledge will cover the existing or future accessories of the pledged movable asset or not. The parties must further agree, under the Mov- able Pledge Agreement, the amount of proceeds of the movable asset that is subject to the pledge. The ranking of the creditors is to be determined by a degree sys- tem or order of priority depending on the preference of the parties. The parties may instruct the registrar at the time of the registration to move forward with degree system, which will allow the subsequent pledgees to benefit from an escalation clause within the Movable Pledge Agree- ment. Pursuant to the Implementation Regulation, the nominal value of the respective degree, the degree and the order of the pledgee, must be stated in the Movable Pledge Agreement. If such a right is granted