NEWSLETTER-2017

375 MISCELLANEOUS Hague Trust Convention The Hague Convention on the Law Applicable to Trusts and on their Recognition (“Hague Trust Convention”) has been 13 signed on 1 July 1985 and entered into force in the onset of 1992 aiming to deal with the institution of trust which is known in mostly common law states but is unknown to the majority of civil law states 14 . Among the contracting parties of the Hague Trust Convention are civil law coun- tries, such as Switzerland (which signed in 2007), the Netherlands, France and Italy. The trust law in Switzerland is not substantive trust law; it consists of private international law provisions as well as sub- stantive provisions on other matters that deal with trusts governed by a foreign law 1516 . Interpretation of Trust under Turkish Law Concept of Parallel Debt Clause 21 of the Intercreditor Agreement contains a placeholder for an optional parallel debt structure to be used where security is be- ing given in a non-common law jurisdiction that does not recognise a security trust structure. While some countries recommend the use of the parallel debt structure, not all jurisdictions recognise this mecha- nism, and other methods may be required to ensure that all secured creditors benefit from the security. Such parallel debt wording essentially operates as a covenant by the borrower or the security provider to pay the Security Agent, as a creditor in its own right, amounts equal to the total amounts payable by the borrower or security provider to the Secured Parties as and when such sums fall due. The creation of this creditor-debtor rela- 13 See https://www.hcch.net/en/instruments/conventions/authorities1/?cid=59. 14 Proceedings of the Fifteenth Session (1984) - Trusts, applicable law and recogni- tion, https://assets.hcch.net/upload/expl30.pdf. 15 Trust law in Switzerland, Dr Thomas Mayer, Step Journal, January 2011, https:// www.step.org/journal, reached via http://www.chinawealthplanning.com/index. php/trust-mainmenu-206/7844-trust-law-in-switzerland.html. 16 Yard. Doç. Dr. EylemApaydın, Common Law’da Trust Kavramı ve Civil Law’da Trust Alanında Güncel Gelişmeler, Legal Hukuk Dergisi, V:14, No: 160, Year: 2016.