NEWSLETTER-2017

254 NEWSLETTER 2017 practice, letters of credit are mostly used for tenders. These types of bank letters of credit would be comprised of temporary letters of credit, performance bonds, and advance payment bonds. Depending on the existence of the term of a bank letter of credit, there are two types of letters, those being the deferred letters of credit, and on-demand letters of credit. Based on the form of the payment demand, the letters of credit would be bank letters of credit, payable upon first demand, and conditional bank letter of credit. In the absence of any regulation, the types of bank letters of credit would increase. Conclusion Considering the advantages of bank letters of credit, in practice, it is a commonly preferred security in financial transactions. Under Turkish law, there is no legislation that regulates the content and the requirements of bank letters of credit. However, it is a commonly ac- cepted view that bank letters of credit are types of guarantees. There- fore, the elements of a guarantee relationship would also be referred for the bank letter of credit. Since the legislation is silent in terms of the formalities of bank letters of credit, it is generally accepted to issue the guarantees in written form.