New Law on Movable Pledges Will Enter into Force on 1 January 2017

The Law on Movable Pledge for Commercial Transactions (“Law”) was published in the Official Gazette on 28.11.2016 which will repeal the current Commercial Enterprise Pledge Law numbered 1447 and be in effect as of 1 January 2017.

The Law aims to extend the use of moveable pledge without delivery as a security, to widen the scope of the movables that are subject of this pledge, to ensure publicity of movable pledge and to facilitate access to financing by providing alternative methods for foreclosure of movable pledges.

The Regulation which will determine the procedures and principles for various matters within the scope of the Law is expected to enter into force in a short time. Also the Pledged Movable Registry is required to be established as per the Law.