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Financial Leasing Agreements
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Att. Leyla Orak
Introduction
Until December 13, 2012, financial leasing, factoring, financing
and loan activities were regulated by the Financial Leasing Law No.
3226 (“Abrogated Law”), the By-Law regarding Money Lending
Activities No. 90 and the relevant secondary legislation. The Financial
Leasing, Factoring and Financing Companies Law No. 6361 (“Law
No. 6361”) which was promulgated by the Turkish Grand National
Assembly on November 21, 2012, entered into force through publica-
tion in the Official Gazette dated December 13, 2012 and numbered
28496. Law No. 6361 regulating all companies engaging in the above-
mentioned activities repeals and replaces the Abrogated Law and the
decree No. 90.
Law No. 6361 introduces important changes to the financial leas-
ing agreements. In this month’s newsletter article, the financial leasing
agreements and the material changes introduced with the new provi-
sions shall be analyzed.
Execution of the Agreement and Property Rights
The Financial leasing agreement is an agreement under which the
lessor transfers possession of a good they provide to the lessee in
exchange for a leasing price. Pursuant to Law No. 6361 investment,
participation and development banks as well as financial leasing com-
panies may be party to a financial leasing agreement as the lessor.
Thereby, the limitation under the Abrogated Law that only a financial
leasing company could be the lessor is no longer preserved. Further,
under the Abrogated Law it was not clear whether the lessor could pur-
chase the good from the lessee first and then lease it under a financial
lease agreement. Article 18/1 of Law No. 6361 now explicitly enables
the lessor to purchase the leased good from a third person or even from
the lessee.
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Article of December 2012