An Evaluation On the Relationship Between “The Chattel Mortgage Registry” at a Pledge Over a Commercial Enterprise and Other Registers within the Perspective of the Law on Chattel Mortgage in Commercial Transaction

The pledge, a kind of collateral security, has been virtually regulated under the Law of Property Book of the Turkish Civil Code (TCC). It can be claimed that the main principle in mortgaging the chattel is that it is carried out by transferring actual possession. (TCC Art. 939/1) However, due to the specific requirements of commercial life, the Law of a Pledge Over a Commercial Enterprise numbered 1447, which was enacted on 21.7.1971 (former law), had an exception on the chattel mortgage and in order to establish the pledge had not required to transfer the chattel that was a subject of a pledge. As a matter of fact that the lawmaker, who acts with similar thoughts in terms of not to search for transferring the chattel that is a subject of a pledge, has enacted the Law on Chattel Mortgage in Commercial Transaction (CMCT) numbered 6750 on 20.10.2016 and has put in force on 01.01.2017 in order to contribute the financial needs of small and medium-sized enterprises (SMEs) and to meet with the current needs of the financial markets and so, the old Law of a Pledge Over a Commercial Enterprise numbered 1447 was abolished. This article, in light of the amendments made with the Law numbered 7099 in the CMCT numbered 6769 published in the Official Gazette dated 10.03.2018 and numbered 30356 and the relevant provisions of “Regulation on the Amendment of the Regulation on the Chattel Mortgage Registry”, “Regulation on the Amendment of the Regulation on the Establishment of the Right of Pledge in Commercial Transactions and the Use of Rights after Default” and “ Regulation on the Amendment of the Regulation on the Determination of Value of Movable Estates“ published in the Official Gazette dated 22.05.2018 and numbered 30428, examines the relationship between the Chattel Mortgage Registry as the new regulation of the Law on Chattel Mortgage in Commercial Transaction numbered 6750 and other Registers in case of one or more assets of commercial enterprise is pledged and the legal consequences of the registration on the Chattel Mortgage Registry have been assessed.