Turkey: The law amending the Enforcement and Bankruptcy Act and certain laws is published
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Law No. 7343 amending the Enforcement and Bankruptcy Law and certain laws (“Amending law“) was published in the Official Gazette of November 30, 2021 under the number 31675 and came into force on the same day. The amendment law introduces fundamental changes to the organizational structure of the enforcement agencies as well as procedures for the postponement of enforcement and the sale, valuation and tendering of seized properties were under the Enforcement and Bankruptcy Act of 2004 (“EBL“).
Some notable changes to the Amending Act are summarized below:
- Article 3 / a added to the EFSA and the changes in Article 1, Article 4 and Article 13 EFS allow the appointment of a senior enforcement director to increase efficiency and regulate the organization of enforcement offices with excessive workload and their numbers are high. The amendment also allows for the establishment of a directorate of the Enforcement Office in these provinces.
- According to the amendment to Â§ 36 EBL, instead of the regional court or the court of appeal, the court for the decision on the postponement of enforcement is designated as the enforcement court at which the enforcement proceedings are initiated. In addition, it was made clear that the effect of the postponement continues until the end of the appeal period before the Higher Regional Court if the Regional Court rejects the action on the merits and the decision is contestable.
- The amendment to Article 87 EBL removes the power of law enforcement officers to appraise confiscated real estate that is entered in an official register. When such properties are seized, the appraisal is carried out by the experts who are appointed by the State Expert Committee on Seizure ex. are registered government office without request of the parties.
- In accordance with the amendment to Article 106 EBL, the limitation period for the application for the sale of seized movable property is extended to 1 year from the seizure, as is the case with immovable property. In addition, the debtors have been granted the right to demand the sale of the pledged property. In addition, it has become mandatory to deposit the evaluation and sales costs in advance with the sales request.
- According to the amendment to Article 111 EBL, agreements to be concluded between the creditor and the debtor for the payment of the debt in installments are exempt from stamp duty.
- According to Art. 111 / a EBL, the debtors are granted the right to sell their seized property themselves. The prerequisite is that the sales price is more than 90% of the appraised value of the property or the sum of the claims secured by this property and has priority over the claims of the seller, whichever is higher, plus the sum of the up to then for the Object execution costs incurred.
- In accordance with the amendments to Articles 111, 114, 115 and other various articles of the EBL, the forced sale of movable and immovable property will take place through tendering on an electronic platform. The amount of the deposit for participation in the tender was reduced from 20% to 10% of the property value.
- Pursuant to the amendment to Article 134 EBL, if a seized property is forcibly sold, the successful bidder can request the expert to pay the specified rent or monthly usage fee from the person using the property under a lease or for any other legal reason Enforcement authority. In this case, the enforcement agency issues a payment order to the person concerned.
- According to the amendment of Art. 142 / a EBL, the creditors to whom the list of creditors is made known can collect the amount corresponding to their share by depositing an unlimited bank guarantee letter, even if no objection or complaint is made against the creditors list of creditors.
You can find the full text of the Amending Act here here. (Only available in Turkish)
Information published for the first time in the MA | Gazette, a bi-weekly legal update newsletter produced by Moroglu Arseven.
The content of this article is intended to provide general guidance on the subject. Expert advice should be sought regarding your specific circumstances.
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