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Liquidation of the Movable Properties
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Att. Alper Uzun
In General
Our legal system provides, under article 939/1 of the Turkish Civil
Code that pledges over movable properties may be established by
transfer of actual possession of the movables. Pledges over certain
goods whose transfer lacks any benefit to the creditor may be estab-
lished without transfer. Pursuant to article 940/2 of the Turkish Civil
Code, the movable properties that are required by law to be registered
to their relevant registries may be pledged, without transfer of posses-
sion of such property, by means of annotation of pledge to the relevant
registry, for the purposes of guaranteeing the receivables of real per-
sons or legal entities.
Procedure of Liquidation of Pledged Property
Enforcement proceeding by means of liquidation of a pledge may
be made through enforcement proceedings based on a court decision or
enforcement proceedings without a court decision (for the purposes
of this article, a court decision shall hereinafter be referred to as a
“judgment”).
If the enforcement proceeding relies on a judgment or on a docu-
ment specified under article 38 of Enforcement and Bankruptcy Code
(“EBC”) among documents which serves as a judgment for the pur-
poses of that article (
i.e.
compromises made before a court, accep-
tances and notarial deed issued
ex officio
including acknowledgement
of a pecuniary debt, surety ship of appeal with the sureties of execution
office), the liquidation of pledge shall be made through enforcement
proceedings based on a judgment.
Enforcement proceedings based on a judgment and enforcement
proceedings without a judgment by means of liquidation of a pledge
materially resemble the general seizure proceedings. However, in the
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NEWSLETTER 2012
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Article of September 2012