01 Mar WHAT IS THE PLEDGE RIGHT? HOW TO SET UP A PLEDGE ?
A pledge right is a right that authorizes the creditor to receive the receivable from the amount obtained by converting a movable or other right into money if the creditor who owns the right cannot receive the receivable. The owner has allocated the savings authority arising from the right of ownership to the owner of the pledge right. Pledge rights are divided into immovable and movable pledges. In order for the pledge right to be established, it is necessary to have a valid receivable right in the middle first. The legal principles related to the right to pledge are enshrined in the Civil Code as listed below.
I. Types of immovable pledge
ARTICLE 850.- An immovable pledge can only be established in the form of a mortgage, a mortgage debt note or an irat note.
II. Secured receivables
1. The main currency
ARTICLE 851.- An immovable pledge can be established for a certain receivable, the amount of which is indicated by Turkish money. If the amount of the receivable is not clear, the upper limit that the real estate will be secured to meet all the demands of the creditor is specified by the parties.
Real estate pledges may be established in foreign currency by credit institutions operating at home or abroad to secure loans issued in foreign currency or with a foreign currency measure. In this case, the amount expressed by each degree is indicated on the type of money in which the pledged receivable is determined. However, a pledge cannot be established using more than one type of money at the same time.
If a degree belonging to a pledge established in foreign currency is discharged, a pledge may be established in its place in Turkish currency or foreign currency in exchange for the date of registration. If the degree of a pledge established with Turkish money is discharged, a pledge may be established in foreign currency in exchange for the date on which it will be registered in its place.
The foreign currency purchase rate of the Central Bank of the Republic of Turkey on the day of the account is taken as the basis for foreign or Turkish currency reserves. The Council of Ministers determines which foreign currencies the pledge rights can be established on.
2. Rate
ARTICLE 852.- Subject to restrictive provisions, the parties may decide the interest rate as they wish.
III. Moved
1. Being the subject of a hostage
ARTICLE 853.- The right of pledge can only be established on real estate registered in the title deed.
2.Being specific
a. If the immovable is the only one
ARTICLE 854.- When establishing a pledge, it is necessary to indicate the immovable property that is its subject.
Parcels of real estate that are divided cannot be pawned unless they are recorded separately in the land registry.
b. If there is more than one immovable property
ARTICLE 855.- The pledging of multiple immovables for the same debt depends on the fact that the immovables belong to the same owner or to the owners who are jointly responsible for the debt.
In other cases where more than one real estate is pledged for the same receivable, it is indicated when establishing a pledge that each real estate constitutes a guarantee for the amount of the receivable.
Unless there is an agreement to the contrary, the land registry office distributes the re’sen guarantee to each of the immovables at the rate of its value.
B. Establishment and termination of the pledge
I. Establishment of a pledge
1. Registered
ARTICLE 856.- Real estate pledge is established by registration in the land registry. The discrete cases provided for in the law are reserved.
The validity of the contract on the establishment of a pledge of immovable property depends on the fact that it was made in an official way.
2. Real estate belonging to more than one person
ARTICLE 857.- The stakeholder may pledge his/her own share in the shared ownership.
After the pledge is established on the share, the stakeholders cannot pledge the entire property.
The property is not subject to ownership, but it can be pledged as a whole and on behalf of the entire owners.
II. Termination of the pledge
ARTICLE 858.- The pledge of immovable property ends with the abandonment of registration or the complete destruction of immovable property.
The provisions of the law on expropriation are reserved.
III. Consolidation of real estate
1. Transfer of the pledge to another immovable property
ARTICLE 859.- As a result of the parcel consolidation and distribution process performed by an authorized public institution or organization, the pledges on the combined parcel are transferred to the immovable property issued in place of that parcel, maintaining their order.
If the real estate as a result of the merger replaces more than one parcel with a pledge for different receivables or some of them without a pledge; The pledge rights that pass on this real estate cover the real estate as a whole and maintain their order to the extent possible.
2. The debtor’s rescue of the real estate from foreclosure
ARTICLE 860.- The debtor of the receivable secured by one of the combined real estate can redeem the real estate from foreclosure by paying its value at the time of the merger, provided that he reports it three months ago.
3. Money paid as a reward
ARTICLE 861.- The money paid as a dec for a pledged real estate is divided among the creditors in accordance with their order, in proportion to the amounts of their receivables if they are in the same order.
This amount cannot be paid to the debtor without the consent of the creditor if the amount of the receivable secured by the pledge is more than one-twentieth or if the new immovable does not create sufficient guarantees for the receivable.
C. The Provision
I. Scope of the pledge
ARTICLE 862.- The pledge obliges the real estate together with its integral parts and add-ons.
During the establishment of the pledge, things that are clearly shown as attachments, such as machinery, hotel flooring items, and are written in the declarations column in the land registry are considered attachments unless it is proved that they cannot be of this nature according to the law.
The rights of third parties on add-ons are reserved.
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