e-book2013

NEWSLETTER 2013

Ship Mortgages under the Commercial Enterprise Pledge

Att. Suleyman Sevinc

Introduction

The commercial enterprise pledge, which is of great importance

in business transactions as a type of security

, is regulated under the

Commercial Enterprise Pledge Act (“CEPA”) No. 1447. In this article,

pledges containing ships that are elements of a commercial enterprise

regarding which a commercial enterprise pledge will be established

will be examined considering the provisions regulating the commercial

enterprise pledge and ship mortgages.

Commercial Enterprise Pledge

The commercial enterprise pledge agreement is defined in Art.

2 of CEPA. As per this article:

“The commercial enterprise pledge

agreement is concluded by and between credit institutions having legal

personalities and which are established as corporations, real persons or

enterprises having legal personalities active in sale of goods on account

and cooperatives on one side and real persons or legal entities owning a

commercial enterprise on the other.”

The scope of this agreement should

detail, as specified in Art. 3 CEPA, the trade name and enterprise name,

machinery, instruments, tools and motor transportation vehicles owned

at the time of the registration of pledge and allocated to the activities of

the commercial enterprise, intellectual property rights such as patents,

trademarks, models, diagrams and licenses.

Some of these elements must be included in the scope of the

commercial enterprise pledge; otherwise, the pledge agreement will be

deemed invalid. Within that scope, the parties cannot exclude the trade

name, company name and movable facilities of the enterprise from the

Article of October 2013

In the event the pledge is established on the commercial enterprise, the elements of the

commercial enterprise are not obliged to deliver to the pledgee and the pledger may continue

to use these elements which are already pledged to a third party, the pledgee.