ERDEM-NEWSLETTER-2018-metin

6 NEWSLETTER 2018 A connection with the negotiable instrument must be established in the written pledge contract, as the two cannot circulate, separately. When the debtor is given the registered instrument, he must be able to determine the real rights holder. In the event the pledge declara- tion is written on registered share certificates, this shall qualify as an endorsement. (TCC Article 689/1). On the other hand, in the event the registered share certificate is transferred with the written declaration of transfer of the certificate, the rule of “no one can transfer more than his right” shall apply, and the pledge right cannot be acquired with good faith. According to Turkish Civil Code Article 956/2, for the pledge of the other negotiable instruments, the certificate should be delivered by endorsement and written transfer declaration. Other negotiable instru- ments mean bearer share certificates that are transferred by endorse- ment and delivery, and registered certificates that are transferred by declaration of transfer and delivery (TCC Article 647/2). As the regis- tered certificates are transferred by way of endorsement and transfer of possession under TCC Article 490/2, registered share certificates are negotiable instruments established to the order under the law. Transfer of the negotiable instruments to the order is subject to TCC Article 689/1, and the pledge is established by way of pledge endorsement and transfer of the possession of the share certificate. Pledge endorsement is made by way of making an endorsement on the share certificate or on the allonge that includes the statement “its worth is guarantee,” “its worth is pledged,” or any other state- ment that signifies a pledge and signing by the pledger. (TCC Article 683, Article 689). As well, the right of pledge may also be established through a blank endorsement (TCC Article 683/1). In this instance, there is a hidden pledge endorsement. Provisional Certificates. Provisional certificates are the certifi- cates that are issued until share certificates are issued in order to be used as bearer share certificates or registered share certificates. (TCC Article 486/2) The function of provisional certificates is the same as share certificates. Provisions regarding share certificates apply to pro- visional certificates by comparison (TCC Article 486/2). Therefore, provisional certificates are also negotiable instruments and order in-