FINANCIAL LEASING, FACTORING AND FINANCING COMPANIES LAW
(Published in the Official Gazette dated December 13, 2012 Nr. 28496)
Objective, Scope and Definitions
ARTICLE 1 – (1) The objective of this law is to regulate the establishment and operating principles of financial leasing, factoring and financing companies operating as financial institutions as well as the principles and procedures relating to financial leasing, factoring and financing contracts.
ARTICLE 2 – (1) Financial leasing, factoring and financing companies established in Turkey shall be subject to provisions of this Law.
ARTICLE 3 – (1) For the implementation of this Law, the following terms shall have
the meanings indicated below;
ç) Financial leasing: A leasing transaction enablin g one of the following aspects on condition to be based on a financial leasing contract; transferring the possession of an asset by the lessor authorized pursuant to this Law or related legislation to the lessee at the end of lease giving the lessee the right to purchase the asset at a sum less than its current market value at the end of the lease period, lease period shall cover more than eighty percent of the asset’s economic life, or the sum of current value of lease payments to be made pursuant to the financial leasing contract shall constitute more than ninety percent of the current market value of the asset.
condition for possession of minimum fifty one percent thereof or possession of privileged shares although this majority is not owned or capability of assigning the majority of the members of the Executive Board, which is a basis for adoption of resolutions by having disposition of the majority of the voting rights pursuant to the agreements made with other shareholders or in any other manner or possession of powers for their dismissal.
ğ) Agency: Banking Regulation and Supervision Agency,
ı) Company(ies): Financial leasing companies, factoring companies and financing companies established in Turkey
Transactions subject to Permission
Permissions for Establishment and Operation
Permission for establishment
ARTICLE 4 – (1) The establishment of a company in Turkey shall be permitted upon affirmative votes of at least five members of the Board provided that the establishment conditions laid down in this Law is fulfilled.
(2) The principles and procedures for permission applications and granting permissions shall be determined by a regulation to be issued by the Board.
ARTICLE 5 – (1) Any company to be established in Turkey shall fulfill the following requirements;
ç) The founders should meet the requirements indica ted herein
an obstacle for the efficient supervision of the Agency,
ğ) The business plans for the intended fields of activity, the projections regarding the financial structure of the institution, the budgetary plan for the first three years and an activity program showing the establishment of corporate structure must be submitted.
(2) The Board is authorized to increase the minimum paid-up capital amount each year so as not to exceed the increase rate required in annual producer prices index announced by the Turkish Statistical Institute.
Qualifications of founders
ARTICLE 6 – (1) The founders of companies shall;
companies whose operating permissions have been revoked, excluding voluntary liquidation, as well as in agencies operating in capital markets,
ç) Have not been sentenced to heavy imprisonment or imprisonment of more than five years pursuant to the repealed Turkish Penal Code Nr. 765 dated March 01, 1926 or other laws, even though pardoned, with the exception of negligent offenses, have not been sentenced to imprisonment of more than three years pursuant to the Turkish Penal Code Nr. 5237 dated September 26, 2004 or other laws or have not been convicted of the violation of the provisions, that require imprisonment, of the repealed Banking Law Nr. 3182 dated April 25, 1985, of the repealed Banking Law Nr. 4389 dated June 18, 1999, of this Law, of the banking law Nr. 5411 and of the Capital Market Law Nr. 2499 dated July 28, 1981 and of the legislation on lending transactions, or have not been convicted of infamous crimes such as embezzlement, extortion, bribery, theft, swindling, forgery, breach of trust, fictitious bankruptcy, smuggling offenses other than those arisen by the acts of using and consuming, fraudulent acts in official tenders and trades, money laundering or crimes committed against the prestige of the State and unveiling State secrets, offenses committed against the sovereignty of the state or the prestige of its organs, offenses committed against the security of state, offenses committed against the constitutional order or the functioning of the constitutional order, offenses committed against national defense, offenses committed against the secrets of the state and espionage, offenses committed against relations with other states, offenses within the scope of the Prevention of Terrorism Act Nr. 3713 dated April 12, 1991 as well as tax evasion or have not been engaged in such offenses under the repealed Turkish Penal Code No. 765, Turkish Penal Code No. 5237 or other laws,
The sub-paragraphs (b) and (c) of this paragraph shall not be applicable for the multi-lateral credit institutions and financial institutions that are established by international agreements to which Turkey is a party.
(2) The partners of the company having ten percent or more shares in the capital of legal person founding partners or the natural persons and legal entities having the control shall meet the conditions laid down in the first paragraph.
(3) In the case natural persons or legal entities having ten percent or more shares in the capital of company or having the control of the company as well as natural persons or legal entities having ten percent or more shares in the capital of legal entities having ten percent or more shares in the capital of company or having the control fail to meet the qualifications stated in the first paragraph, excluding sub-paragraph (d), they shall transfer the shares they own within six months in a manner to make their status to be in compliance with the provisions of this article. By whom and how shall the voting rights for the shares to be transferred within the mentioned period be used is determined by the Board.
ARTICLE 7 – (1) The companies that are permitted to be established within the frame of Article 4 shall be obligated to receive permission for operation from the Board. The permissions granted by the Board shall be issued in the Official Gazette.
ç) Their managers should bear the qualifications se t out in this Law.
ARTICLE 8 – (1) Opening up domestic and abroad branches by companies are subject to permission. Companies cannot be organized under any names other than branches and cannot appoint agencies.
(2) The qualifications of branches as well as the principles and procedures relating to permission are determined by the Board.
Processes and operations the company cannot conduct
ARTICLE 9 – (1) The Company;
ç) Cannot collect deposit or money by any name for hire, except for issuing securities, borrowing money from international markets and fund-raising from partners and partnerships,
banks, money markets and organized markets within the scope of general principles pursuant
to the Act number 2499.
Provisions Regarding the Articles of Association
Amendments to the Articles of Association
ARTICLE 10 – (1) The Agency shall be priorly notified about the amendments to be made on the articles of association of companies. In case the Agency does not declare any negative opinion about the amendments on articles of association within fifteen days, these amendments shall be put on the agenda of the general meeting of companies and the outcome of process shall be notified to the Agency.
Acquisition and transfer of shares
ARTICLE 11 – (1) Acquisition or transfer of shares representing ten percent or more of the company capital by one person or share transfers causing a shift of control in the company are subject to the Agency’s permission.
Merger, Acquisition, Division and Liquidation
Merger, acquisition, division and liquidation
ARTICLE 12 – (1) Merger, acquisition and division of the company are subject to general provisions on condition that the permission of the Board has been granted. Principles and procedures concerning the granting of the permit shall be specified by the Board.
(2) On condition to take positive opinion from the Board, general provisions shall be applied in case the company puts an end to its activities and liquidated. If deemed necessary, the liquidation process of the company may be supervised by the Agency.
Members of the board of directors, general manager and assistant general managers
ARTICLE 13 – (1) Structures, procedures concerning corporate management, as well
as the related principles shall be determined by the Board by also taking the opinion of the
Internal system, accounting, reporting and independent audit
ARTICLE 14 – (1) The company is responsible for building and operating a sufficient and efficient system appropriate to the scope of its activities as well as the changing conditions, to monitor the risks to which it is exposed and provide control.
(2) The Board is authorized to determine the principles and procedures concerning the operation of the system and to take necessary measures for companies in which the system is deemed insufficient and inefficient.
ARTICLE 15 – (1) The Board is entitled to make necessary regulations and to take all kinds of measures to detect, analyze, monitoring and evaluation of the risks exposed, by specifying limitations and standard ratios for activities and own funds of companies. The company is obliged to comply with the regulations made, calculate limitations and standard ratios specified, come up to them and maintain them and to take and implement the measures requested by the Agency, concerning them in the requested time.
ARTICLE 16 – (1) The company shall make reserves to meet its losses arising from its transactions but amount of which is not clear for certain, within the framework of principles and procedures specified by the Board.
On-site, Off-site Supervision and Notification
ARTICLE 17 – (1) On-site and off-site supervision of the company within the scope of this Law shall be conducted by the Agency.
requested by the professional personnel of the Agency authorized to conduct on-site supervision but also to submit all books and documents and keep them ready for examination.
Provisions Concerning Contracts
Financial leasing contract
ARTICLE 18 – (1)The financial leasing contract is the contract giving the lessee the possession of the good, which is requested and determined by him/herself and shall be purchased from third party or from the lessee him/herself by the lessor or obtained the any other legal means by the lessor, in order to provide full benefit during lease period in return for lease payment to the lessor. Financial leasing contract is the contract foreseeing that the lessor leaves the lessee the possession of a good he/she once purchased from a third party or from the lessee him/herself or procured by another way or took into his/her possession, in return for a rental to provide all kind of benefit, upon the request and selection of the lessee.
Subject of the contract
ARTICLE 19 – (1) Movables and immovables may be subject to the contract. Intellectual and industrial rights such as patents cannot be subject to this contract, except for duplicated copies of computer software.
(2) All kind of good preserving its essential nature may be solely subject to a financial leasing contract, regardless of its integral parts or attachment qualifications.
Financial leasing charge
ARTICLE 20 – (1) Total amount of payments and payment periods of financial leasing shall be determined by the parties. On condition that it is cited clearly in the contract, the leasing charges may be started to be collected as of the date of the contract, even if the good subject to contract is not produced or delivered to the lessee yet. Unless specified in the contract, the good subject to contract shall be delivered to the lessee within two years by the date of the contract.
Financial leasing operations from abroad
ARTICLE 21 – (1) Financial leasing contract to be made from abroad shall be registered by the Association.
(2) Principles and procedures concerning financial leasing operations from abroad shall be determined by the Association by taking the positive opinion of the Board.
Form and registration of the contract
ARTICLE 22 – (1) The contract shall be made in written. Contracts regarding immovable goods shall be registered to the section of annotations in the book of real estate registers in which the immovable is located and the contracts concerning movable goods having their own unique special register shall be registered and annotated to the register in which these goods are registered and shall be declared separately to the Association by the lessor.
The purchase of the good subject to financial leasing
ARTICLE 23 – (1) The property of the good subject to financial leasing owned by the lessor. However, the parties may decide in the contract that the lessee will have the right to purchase the ownership of the good by the end of the contract term.
(2) In case the right of the lessee to purchase the movable registered subject to financial leasing is not used by the lessee within thirty days after that this right was originated and the good was not returned to the lessor pursuant to the article 32 of this Law, the lessor may realize unilaterally all kind of operations about the transfer of the leased good to the lessee, on condition that a decision exists concerning this subject in the contract made between parties and a notification has been made to the lessee about the subject or has not been made because lessor was not found in his/her address. Unilateral requests made by the lessor concerned about the transfer of ownership shall be realized by the related register office.
Rights and debts of parties
ARTICLE 24 – (1) The lessee is the possessor of the good subject to financial leasing during the contract, and has the right to obtain all kinds of benefits in accordance with the purpose of the contract.
(6) The lessor shall not be blamed from the fact that the good provided from a third party upon the choice and request of the lessee to be faulty. The same provisions shall also be applied in case the good is personally provided from the lessee.
The good not delivered to the lessee
ARTICLE 25 – (1) In case the good subject to financial leasing is not delivered to the lessee because the lessor did not make a contract with the manufacturer or seller of the good on time or did not realize the payment required on time or due to other reasons arising from the defect and negligence of the lessor, the provisions of the article 123, 125 and 126 of the Turkish Code of Obligations number 6098 dated January 11, 2011 shall be applied.
Transfer of possession and the title of lessee
ARTICLE 26 – (1) The lessee may transfer his/her lessee title or his/her rights and responsibilities arising from the contract on condition to take written permit of the lessor. The change of lessee made on the leasing contract due to this transfer shall be registered or annotated within the framework of articles 21 or 22 depending on its concern.
(2) In financial leasing transactions made within the scope of housing finance, the lessee may transfer the possession of the good to another person on condition to inform the lessor; in other financial leasing transactions he/she may transfer on condition that there is a provision in the contract.
Transfer of possession
ARTICLE 27 – (1) Unless the contrary was not predicted in the contract the lessor cannot transfer the possession of the good to a third person. In case this right was recognized in the contract, the transfer may be made only to another leaser. The transferee is obliged to comply with the provision of the contract. The validity of the transfer for the lessee depends on if he/she was informed.
Bankruptcy of the lessee or the lessee being subject to executive proceedings
ARTICLE 28 – (1) In case of the bankruptcy of the lessee, the registrar in bankruptcy shall decide on the separation of goods subject to financial leasing before the organization of
the office, according to the article 221(1) of the Law number 2004. This decision of the
registrar in bankruptcy may be protested within seven days.
Bankruptcy of the lessor or the lessor being subject to executive proceedings
ARTICLE 29 – (1) In case of the bankruptcy of the lessor the contract remains to be valid against the bankrupt’s estate until the end of the determined term.
(2) In case executive proceedings are conducted against the lessor by means of compulsory execution, the goods subject to financial leasing cannot be confiscated during the term of the contract.
Termination of the contract
ARTICLE 30 – (1) Unless otherwise specified in the contract, the contract shall be terminated automatically in case it expires, bankruptcy, death or loss of capacity of the lessee.
Breach of the contract
ARTICLE 31 – (1) The lessor may terminate the contract if he/she gave an extra term for thirty days to the lessee who fell into default in paying the financial leasing payment and this payment is still not paid at the end of these thirty days. However, in case it was decided in the contract that at the end of the term the possession will pass to the lessee, this extra term may not be less than sixty days. If a warning was addressed to the lessee because he/she failed to pay on time three or two consecutively of the leasing fees in the contract within one year, the contract may be terminated by the lessor.
Consequences of the termination of contract
ARTICLE 32 – (1) When the contract terminates, the lessee who did not use his/her right to purchase arising from the contract or who does not have this right is obliged to return immediately the good subject to financial leasing.
Consequences of the cancellation of the contract
ARTICLE 33 – (1) In case the contract is cancelled by the lessor or by the lessee pursuant to the article 30(2), the lessee is responsible for returning the good. In case the good returned is sold to third parties and unless otherwise is specified in the contract, if the sale price is less than undue financial leasing costs and if any, total loss of the lessor exceeding it, the difference shall be paid to the lessor by the lessee. Unless otherwise specified in the contract, if the sale price of the good returned is higher than undue financial leasing costs and if any, total loss of the lessor exceeding it, the difference shall be paid to the lessee by the lessor. Same principles shall be applied in case the good returned is leased to third parties by means of financial leasing.
Non applicable provisions
ARTICLE 34 – (1) Articles 764, 765 and 766 of the Turkish Civil Code number 4721 dated November 22, 2001 and the provisions concerning “Partial Pay Sales” in the Section Two, Part One, Division Four and the provisions of the “House and Roofed Working Place Rents” in the Section Two, Part Four, Division Two of the Turkish Code of Obligations number 6098 shall not be applied about the contract.
ARTICLE 35 – (1) In case the whole of or a part of the investments are realized by means of financial leasing, the lessor may benefit from the incentives for economic assets subject to financial leasing, applied if they are purchased. The responsibility of financial leasing company about the incentive certificate is limited to the part transferred to the company.
Provisions on custom
ARTICLE 36 – (1) Following provisions shall be applied to the goods brought according to the contract signed between a foreign company and the lessee, regarding custom taxes and additional financial liabilities:
certain import is not realized and goods subject to financial leasing are wanted to be taken out of the country to be given to the lessor, the collateral taken previously shall be resolved according to the provisions of the Law number 4458.
Exemptions and assessment of tax rate
ARTICLE 37 – (1) Financial leasing contracts and the papers concerning the transfer and amendment of these contracts as well as the ones prepared for their collaterals are exempted from stamp tax, and the transactions made regarding these papers are exempt from charges.
(2) Registration to the land registry of the immovables rented within the scope of leasing transaction made by sale and lease back method is exempt from title deed fees in the name of the lessee by the end of the contract term.
Factoring and Financing
ARTICLE 38 – (1) Factoring contract is a contract including collection which the factoring company provide to its customer, besides recording debtor or customer accounts, any of or the whole factoring or finance guarantee functions by taking over the receivables depending on goods or service sale which can be promoted within the scope of principles and procedures determined by the Board and the receivables promoted with the invoice emanated from goods or service sale.
A factoring contract is the contract which includes any or all of the following functions: The collection, the keeping of the borrower and customer records by the factoring company for the customer by means of taking over the receivables arising from the sale of products or services which could be documented within the framework of the procedures and principles to
be determined by the Board, and the receivables which could be documented by the invoice arising from the sale of products or services; or the factoring guarantee function.
(2) The factoring contract must be prepared in written.
ARTICLE 39 – (1) Financing contract is a contract granting loan for each sort of goods and service receiving by making payment directly to the seller by delivering or providing service in the name and account of real person or legal entity purchasing the good or the service. Loan repayments are made to financing companies by the persons for whom the loans extended to their names.
Financial Leasing, Factoring and Financing Companies Association
ARTICLE 40 – (1) As of the execution date of this Law, Financial Leasing, Factoring and Financing Companies Association which has a public institution and legal entity nature is found within six months.
(2) The companies have to be member to the Association in one month as of the date of taking operating permission.
Duties and Authorizations of the Association
ARTICLE 41 – (1) The association is assigned and authorized from the followings:
ç) Announcing the precautions requested to be taken by the Agency and the resolution
taken pursuant to the legislation concerned,
ğ) Fulfilling other duties stated in this Law.
Organs and Statute
ARTICLE 42 – (1) The organ elections of the Association is realized under juridical surveillance and with secret vote within the scope of the principles foreseen in this Law. The list defining members to join the elections and their members should at least be confided to the head of the board of election to be determined by the Supreme Election Board by a letter the agenda, place, date and the hour of the meeting, defining the respects relating to the second meeting to be made in case of the fact that there shall not be majority, in three copies, at least 15 days before the board meeting in which the election shall be made. The judge approves the list and other respects by making the required analysis; and assigns a head of election board and two election board members and one assistant member for each. Voting operation is made according to secret vote and open census principles. By the end of election period, the election results are determined by a minute and signed by the head of election board and the members. Each sort of objections to be made to the elections in two days as of the regulation of the minute are analyzed by the judge and adjudicated exactly.
(2) The amendments to be made in the status of the Association are entered into force by the resolution of the Council of Ministers upon the proposal which the Agency shall present by receiving the point of view of the Association. The members have to obey the
resolutions and the precautions to be taken by the Association and the status of the Association. The Association expenses are distributed to the members as to the number of votes determined pursuant to status. The members have to invest the share of expenses to their contribution within the period determined in the status. In case that the participation shares to expenses are not paid in the period determined, they are collected by enforcement by the Association. The decisions on payment of expense participation shares are in written official document nature in the article 68 of the Law Nr. 2004.
(3) The board of directors of the Association may impose administrative fines from 1.000 TL to 10.000 TL on members who do not timely and fully comply with the general or specific decisions and measures taken by Association.
Central invoice record
ARTICLE 43 – (1) Factoring companies and banks consolidate the information concerning the receivables which they took over including invoice information in Risk Center or in a manner that the Association found appropriate. The principles and procedures relating to sharing of the information are determined by the Association.
ARTICLE 44 – (1) The following administrative fines are imposed to the companies by the resolution of the Board and by presenting the legal ground of the Law.
ç) In case of contradiction to the article 11 (2) o r article 11(5), up to TL one thousand to
TL three thousand,
to TL 5 thousand,
ğ) In case of contradiction to limitations included in the regulations issued pursuant to the article 15, up to 1% of the amount comprising contradiction, not being less than TL 10 thousand,
ı) In case of not establishing the provisions required to be set aside pursuant to the article 16, not being less than TL one thousand, up to two in thousand of the provision amount required to be set aside; in case of not removing the contradiction in the period to be granted by the Agency, not being less than three months, 3% of the provision amount which were not established,
(3) In case of violation of the resolutions taken depending on this Law by the Board and the Agency as to the articles concerned, to the instructions given by the Agency and regulations, communiqués issued and the other regulations made, administrative fine amounting up to TL 5 thousand to TL 10 thousand is implemented to the real persons and legal entities concerned, pursuant to the resolution of the Board and by explaining its legal ground.
Right to Defense and Decision for Closure
ARTICLE 45 – (1) The decisions as to whether the administrative fines shall be implemented or not shall be taken after receiving the defense of the related party. If no such defense has been submitted within one month from the date of receipt of a notice requiring the relevant party to file a defense, then the relevant party shall be deemed to have waived its right to defend.
(2) While the provisions of the article 44(1)(a) shall be applied to any branch opened in Turkey in contradiction to the article 8 of this Law, they are closed permanently or temporarily by the governors upon the demand of the Agency.
Operating without Authorization
ARTICLE 46 – (1) - The persons who operate in financial leasing, factoring and financing without authorization required to be obtained pursuant to this Law, shall be sentenced to imprisonment from two to five years and administrative fine up to 5.000 days. It is provisioned to security measures special to legal entities concerning the legal entity who committed the offence thereof, in benefit to the said offence. Besides, in case of the offence thereof was committed under the structure of a business place, it can be decided to close the this business place up to one month to one year, and in case of repetition, to close thereof permanently.
(2) The persons who use words or expressions which shall have the impression that they operate like a company in their trade names, any documents, declarations and commercials
and explanations they make to public without taking the authorizations required to be taken pursuant to the Law, are punished with imprisonment up to 3 months to 1 year and juridical fine up to 1000 days. Besides, it can be decided to close these business places up to one month to one year and permanently in case of the repetition thereof.
(3) In cases of the contradiction to the paragraphs one and two, upon the application of the Chief Public Prosecutor’s Office by the criminal law judge, by the criminal court judge the activities of the work place and as well as the advertisements thereof shall be temporarily suspended and their advertisements are collected by the relevant judicial court in case of suing them. These measures endure until they are lifted by magisterial decree. These decisions may be appealed.
Failure to submit the data and documents required by authorized agencies and
auditors and preventing their actions
ARTICLE 47 – (1) Persons who do not present the information and documents which the authorized authorities and auditors by this Law are punished by imprisonment up to one year to three years and judicial penalty up to 500 days to 1500 days.
(2) Persons who prevent the auditors authorized by this Law to make their duties are punished with penalty of imprisonment up to two years to five years.
ARTICLE 48 – (1) Due to false announcements of the company in documents which they present to authorities and auditors stated in this Law and which they publish, the persons who sign each sort of documents comprising basis to them and regulating thereof are punished with imprisonment up to one year to three years, and judicial penalty not being less than 1500 days.
Declaration Liability of the Agency
ARTICLE 49 – (1) In case of determining any element of offence by the Agency relating to the offences stated in this Law, notification is made to Office of the Chief Public Prosecutor.
Revocation of Operating Permission
Revocation of Operating Permission
ARTICLE 50 – (1) The operating license of a company is revoked by the affirmative votes of at least five members of the Board, in case of any of the following conditions to realize;
ç) suspending the operations for one year in a cont inuous manner,
ARTICLE 51 – (1) The following subparagraph is added to the paragraph 20 of the section “I-Land Registry Operations” of the schedul e Nr. 4 with a title of fees to be collected from Land Registry and Cadastre of Charges Law Nr. 492 and dated July 02, 1964.
“g) within the scope of leasing contracts realized by sale and leaseback method, in condition to repurchased by the end of contract period by the lease holder, during the sale of immovable leased to leaseholder 3.96 in thousand is taken from the transferor (in case of determination of not taking back the immovable by the leaser in any way, the ratio in the subparagraph (a) and the fee amount equivalent to the difference between the ratio in this subparagraph is collected with the default interest pursuant to the provisions of the Law nr. 213, from the ones concerned)
(2) The Council of Ministers is authorized to determine the minimum interest rates that financial leasing, factoring and financing companies and the branches established in Turkey shall implement in borrowing transactions and the qualities of other interests and determining minimum amounts or rates thereof and to release them partially or wholly. The Council of Ministers can transfer the authorizations thereof to the Central Bank of The Republic of Turkey.
ARTICLE 52 – (1) The Act on Financial Leasing dated June 10, 1985 and nr.3226 and the Decree Law on Borrowing Transactions dated September 30, 1983 and nr.90 are abolished with their annexes and amendments.
(2) The references made to the Decree Law nr.90 and the Act nr.3226 are deemed to be made to the articles concerned of this Law.
Implementation of the current regulations
PROVISIONAL ARTICLE 1 – (1) The provisions of the regulation, which are not in contradiction with this Law, issued depending on the provisions abolished, are continued to be implemented.
(2) The regulations foreseen in this Law are entered into force in one year.
PROVISIONAL ARTICLE 2 – (1) The companies have their conditions adapted to the article 5(1)(e) in three years; the article 8(1) and the article 13(2) in six months as of the publication of this Law. In case of the fact that compelling reasons exist and thereof deemed appropriate by the Board, these periods can be extended, not exceeding more than one year.
(2) The provisions of the paragraph 1 are implemented on applicants for establishment or authorization to operate to the Agency before April 30, 2012.
Liabilities concerning the Association
PROVISIONAL ARTICLE 3 – (1) The status of the Association which includes; the Association organs, representation of companies in the Association organs, working principles of the Association and the scope of the activities, would be prepared by Financial Leasing, Factoring and Consumer Finance Companies associations separately by taking the approval of the Board, and is entered into force by the Resolution of the Council of Ministers upon the proposal of the Agency.
(2) The companies operating before the date which this Law entered into force have to be member to the Association in one month following the date which the Association shall operate.
Regulated Financial Leasing Contracts
PROVISIONAL ARTICLE 4 – (1) The implementation of provisions relating to the period of the Law Nr. 3226 which is abolished by this Law, for financial leasing contracts regulated before the date which this Law is entered into force, is continued.
Provisions relating to lenders
PROVISIONAL ARTICLE 5 – (1) The persons having lending activities pursuant to the authorization that they have from the Decree Law nr.90 can make application to the Agency for executing one of the activities stated in this Law in six months as of the date which this Law enters into force. They cannot have any lending activities other than transactions concerning the collection of receivables arising from current contracts in this period. The lenders who made application to the Agency, in condition to take the required authorization from the Board, can continue to their activities as factoring, financial leasing or financing companies. The companies to be established have to fulfill the capital liability included in the article 5(1)(e) of this Law in three years. Lending authorization of the ones who cannot receive the required authorization from the Board despite the application to the Agency and the ones who did not make any application to the Agency terminates naturally without any operation.
Entry into Force
ARTICLE 53 – (1) This Law enters into force on the date of publication.
ARTICLE 54 – (1) The provisions of this Law are enforced by the Council of Ministers.