NEWSLETTER-2017

245 LAW OF OBLIGATIONS in a separate agreement, then the validity of such agreement would be dependent on its registration with the Movable Pledge Registry. As per the agreement between the parties, an appraisal of the movable assets may be conducted according to the Appraisal Regula- tion in order to determine the value of the movable assets that are subject to pledge prior to the establishment of the pledge. If such an appraisal is conducted, the amount determined must be written under the Movable Pledge Agreement. The Law abolishes the lex commissoria prohibition that prevents the pledgee from automatically gaining title to the pledged asset due to an enforcement event triggered under the agreement. As per the Law, upon non-performance of the debt, the pledgee has the right to request the transfer of the ownership of the movable asset to herself/himself. If it is the intention of the parties to grant the pledgee with such a right, then this should be included in the Movable Pledge Agreement. With this provision, the Law increases the bankability of the security in financing. On the other hand, the Law does not protect the movable asset, but enables the persons, who would desire so, to avail himself/ herself of this opportunity 3 . Finally, the Law stipulates that the parties must state their rights and obligations under the Movable Pledge Agreement. Whether or not stated under the Movable Pledge Agreement, the possessor is required to take the measures to protect the value of the movable asset and, therefore, is liable for the disposals that would decrease the value of the movable asset. Additionally, the pledgee has right to monitor the pledged movable. Such provisions must also be written under the Movable Pledge Agreement. Conclusion The implementation of movable pledges in commercial transac- tions has gradually increased with the enactment of the Law and the secondary legislation, and the content and validity of the Movable Pledge Agreement, which is one of the elements required for the estab- lishment of movable pledges, has become more significant. The form 3 Ibid, 41.