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The Court of Cassation Decision dated 13.02.2013 and numbered
2012/14777 E. 2013/2711 K. concerning the Validity of the
Suretyship Commitment within the framework of
General Transaction Terms
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Assoc. Prof. H. Murat Develioglu
Introduction
Due to the proliferation and diversification of banking transac-
tions, banks’ increasing intentions to manage and finalize their actions
and operations with greater speed, and to standardize such actions and
operations by categorizing such, the number of banking agreements
containing general transaction terms has increased. While formulating
their loan agreements, banks ensure a third party to provide a mortgage
on an immovable property of his/her own, in favor of the bank. They
frequently choose to add clauses to the official mortgage agreement,
concerning the mortgagor in question, as also being a surety of the
bank within the scope of the loan agreement.
As specified in the decision dated 13.02.2014 and numbered
2012/14777 E, 2013/2711 K of the 19th Civil Chamber of the Court of
Cassation, these types of clauses shall be subject to the validity assess-
ment of general transaction terms, within the framework of the relevant
articles provided in the Code of Obligations (“TCO”) No. 6098.
The Summary of the Decision
In the decision in question, a mortgage has been established on the
immovable property registered in the defendant’s name, in order to
provide a security for the loan agreement signed by and between the
plaintiff bank, and the company that is not a litigant. In addition, a
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NEWSLETTER 2014
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Article of December 2014