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issuance, shall be determined by a special law. The Capital Markets
Board adopted important communiqués within this scope.
In accordance with the Capital Markets Law (“CML”), the Capital
Markets Board adopted the Communiqué on Asset Backed Securities
and Mortgage Backed Securities (III-58.1) (“Communiqué”) and reg-
ulated principles and procedures of asset-backed and mortgage-backed
securities.
With respect to the Communiqué, asset-backed securities and
mortgage-backed securities shall be briefly assessed, below.
Asset-Backed and Mortgage-Backed Securities (“AMBS”)
The Communiqué defines mortgage-backed securities as the secu-
rities that are secured by mortgages, issued in exchange for the assets
to be acquired by the housing finance fund or mortgage finance fund.
Asset-backed securities are the securities issued in exchange for
the assets to be acquired by the housing finance fund or mortgage
finance fund.
If the fund is the issuer, an asset finance fund for the issuance of
the asset-backed securities and a housing finance fund for the mort-
gage-backed securities shall be established. The funds established by
the financial leasing companies and financing companies shall only
issue AMBS through the acquisition of the assets owned by the
founders. The funds established by the banks, mortgage financing, and
broadly authorized intermediary institutions are allowed to issue
AMBS through the acquisition of assets that are owned not only by the
founders, but also by other institutions.
In Turkey, these fund may be established for a limited or unlimit-
ed period of time. However, the funds shall neither be established, nor
operated, for purposes other than AMBS issuance.
The assets of the fund shall not be disposed of for other purposes
until the issued AMBS are redeemed. The aforementioned rule shall
also be valid in case that a public institution acquires the control or the
management of the founder. The assets of the fund shall not be subject
to attachment, precautionary measures, or the bankruptcy process,
including the collection of the public receivables.
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NEWSLETTER 2014