Turkish Regulation Related To Bank And Credit Card

Turkish Regulation Related To Bank And Credit Card

10 March 2007 SATURDAY Official Gazette Issue: 26458

From the Banking Regulation and Supervision Agency:

REGULATION ON BANK CARDS AND CREDIT CARDS [1]

SECTION ONE

Objective, Scope, Basis and Definitions

Objective

ARTICLE 1 – (1) The objective of this Regulation is to lay down the principles and procedures concerning the issuance of bank cards and credit cards, usage thereof as well as the operating principles of entities included in card payments system.

Scope

ARTICLE 2 – (1) Entities which establish a card system, issue cards and enter into merchant agreements, entities making clearing and settlement transactions through information change for card transactions as well as merchants and card holders are subject to the provisions of this Regulation.

(2) The persons or entities which issue cards or establish a system for forward sales of goods or services and for tracing of accounts payable and accounts receivable solely within their own workplace, or the persons or entities which issue cards up to a certain predetermined amount or level without any crediting transaction or without being subject to any account, will be excluded from the provisions of this Regulation.

Basis

ARTICLE 3 – (1) (Amended:OG-21/12/2008-27087) This Regulation has been prepared based on Articles 4, 5, 6, 8, 9, 10, 12, 13, 14, 21, 23,

24, 25, 26, 27 and 29 of the Law on Bank Cards and Credit Cards dated February 23, 2006 Nr. 5464.

Definitions

ARTICLE 4 – (1) The following terms and expressions used in this Regulation are defined as follows;

a) (Additional:OG-21/12/2008-27087) Firmware: upgradable software which is known as firmware and existing on the programmable memory within a hardware, required by the hardware to use all of its features,

b) Other institutions: Institutions other than banks having the authority to issue credit cards,

c) Act: Act Nr. 5464 on Bank Cards and Credit Cards,

ç) (Additional:OG-21/12/2008-27087) Sensitive data relating to cards: PIN information existing on bankcard or credit cards and which includes the information set/sets that can be used in making financial transactions in case it is captured, furthermore used in the verification of card holder and which must be hold secret,

d) Card system organization: an organization which establishes a bank card or credit card system and grants authorization to issue cards or enter into merchant agreements according to the said system

e) Card issuing organization: refers to banks and other organizations authorized to issue bank cards or credit cards

f) Card organization: card system organization, card issuing organization and organizations entering into merchant agreements,

g) Founder: natural persons or legal entities having the shares representing directly or indirectly ten percent or more of the capital or voting rights of a card organization as well as the shares giving the privilege to determine members to the executive boards, even though it is under the mentioned ratio,

ğ) Board: the Banking Regulation and Supervision Board,

h) Agency: the Banking Regulation and Supervision Agency,

ı) Financial institutions: institutions whose main activity fields are money and capital markets and operating in these fields by the permission and license taken pursuant to their own special legislation,

i) (Additional:OG-21/12/2008-27087) POS: Electronic instrument used for the realization of the purchase of any kind of goods and services or transactions for cash payment document arrangement by taking as basis the information on bank card and credit card as well as the transactions which are stated to be evaluated within the scope of cash usage pursuant to the provisions of this Regulation,

j) Organizations entering into merchant agreements: banks or institutions which enter into agreements with merchants so as to ensure acceptance of bank card or credit card by them

k) (Additional:OG-21/12/2008-27087) 3DSecure: Protocol which brings additional security layer for the transactions made in internet media through bank card or credit card and certified by card system organizations.

SECTION TWO

Transactions Subject to Permission

Information and documents on operating license

ARTICLE – (1) Following documents shall be enclosed in the application petitions to be submitted to the Agency in order to carry out operations of card organizations in Turkey;

a) Declarations to be prepared pursuant to the samples (annex-1 and annex-2) included in annex of this Regulation and be individually signed before notary public by the founders,

b) Documents to be prepared by related banks to be addressed to the Agency, each of which have the same date, for the authentication of information relating to deposit and loan accounts determined in the declarations of founders,

c) Articles of association,

ç) Detailed feasibility report analyzing the benefit expected from the activities of these organizations as well as estimated balance sheet as and profit/loss statements showing three-year targets as of the establishment,

d) Documents to be received from the Commercial Courts of First Instance concerning that the founders have not declared bankruptcy, no ruling for postponement of bankruptcy have been given about them, restructuring applications through reconciliation of legal entities have not been endorsed and documents to be received from Execution Courts showing that they have not concordat,

e) Criminal records containing the archive records received by natural person entities, in the last six months,

f) Copies of resolutions adopted by the authorized organs regarding admission of the founders as legal entities to the entity as partners,

g) Declaration showing that founders do not directly or indirectly have ten percent or more shares in bankers subject to liquidation, insurance companies and agencies operating in money and capital markets (annex -3),

ğ) Declaration showing that founders do not directly or indirectly have ten percent or more shares in banks subject to liquidation or in banks transferred to the Savings Deposit Insurance Fund before the transfer (annex-3),

h) Copies of the relevant issues of the Turkish Trade Registry Gazette regarding the founders as legal entities, lists indicating their partners, rates and sums of their shareholdings including any privileged shares if any, detailed explanations on the fields of operation, investment and operational areas and last three years’ balance sheets and profit/loss statements certified by sworn financial consultants licensed as per Law Nr. 3568 and reports prepared by rating agencies and including the foreseen rating, if any

ı) Last three years’ consolidated balance sheets and profit/loss statements of the capital group of which the founders as legal entities are a part, as certified by an internationally accepted independent auditing company and in accordance with international accounting standards, if any

i) Statements showing shareholders and share ratios of legal entity partners of legal entity founders and of legal entities holding share in capitals of those partners, in order to ensure the determination of indirect shareholdings in capital,

j) Documents to be received from the relevant tax offices and the Social Security Institution that the founders currently have no overdue tax and premium debts,

k) Reports on the financial status of those founders committing to subscribe ten per cent or more of capital, which are certified by sworn financial consultants who are licensed under Law Nr. 3568,

l) Detailed resumes of the founders and if determined, members of board of directors as well as the general manager to be appointed which also includes the information on whether or not they have had a duty in a financial entity in the last ten years,

m) Copies of letter of proxy given to person or persons authorized to represent the founders,

n) Copies of the letter of commitments to be signed by each of the founders committing ten percent or more of the capital and be arranged pursuant to the sample in annex-4 showing that they meet the required resource as a result of their own commercial, industrial and other legal activities free from collusion.

(2) In the case that none of the founder partners applied for carrying out card organization activity in Turkey have the founder qualification stipulated in this Regulation, necessary information and documents shall be demanded from five partners having the biggest shares within the scope of this article.

(3) Provisions of this article are applied to the information and documents to be provided by persons of foreign nationality.

(4) The Agency is authorized to ask additional information and documents which it deems necessary for the implementation of this regulation, furthermore, by the Board resolution, it is authorized to ask for the information and documents stated in this article in different scope and contents

Establishment of card organization or share takeover in Turkey of bank or financial institutions established abroad

ARTICLE 6 – (1) The following shall be enclosed to application to be submitted to the Agency by banks or financial entities established abroad in order to establish a card organization in Turkey or takeover the shares of an existing card organization,

a) Articles of association of the bank or financial institution,

b) Copies of resolution by authorized boards for establishing a card organization in Turkey or takeover the shares of an existing card organization,

c) Detailed feasibility report analyzing the benefit expected from the establishment of the card organization or takeover of shares as well as estimated balance sheet and profit/loss statements showing three-year targets as of the establishment and a report showing the resource amount needed for capital increase, if required and the resources from which those amount will be provided,

ç) Last five years’ balance sheets and profit / loss statements of the bank or financial organization as well as independent audit reports thereof prepared by authorized institutions,

d) Detailed information and documents on partners of the bank or financial institution, its organization and organization structure out of the country it’s established, its activities in international financial markets as well as the report prepared on the bank or financial institution by internationally accepted rating companies which also includes the foreseen rating,

e) Document to be received from related official authority showing that the bank or financial institution is not prohibited to accept deposit or carry out banking operations in the country it is established or operating and/or not having a limitation on its activities,

f) Minutes on the last general assembly of the bank or financial institution and a list of partners holding ten percent or more of the capital certified by related authorities of the country in which the headquarter of the bank or financial institution is established,

g) Letter of commitment for the submission to the Agency of the rapports relating to the inspection to be made every year by one of the authorized independent audit companies pursuant to the legislation of the country in which the headquarter of the bank or financial institution is established.

(2) The Agency is authorized to ask additional information and documents which it deems necessary for the implementation of this regulation, furthermore, by the Board resolution, it is authorized to ask for the information and documents stated in this article in different scope and contents.

Opening branches in Turkey of card system organizations headquarters of which are abroad

ARTICLE 7 – (1) Provisions of articles 5 (excluding 5(1a)) and 6 of the Regulation on Transactions of Banks Subject to Permission and Indirect Shareholding published in the Official Gazette dated November 01, 2006 Nr. 26333 are applied to opening branches in turkey of card system organizations headquarters of which are abroad on condition not to open representative offices pursuant to Article 4 of the Law.

Opening representative offices in Turkey of card system organizations headquarters of which are abroad

ARTICLE 8 – (1) Opening representative offices of card system organizations in Turkey, headquarters of which are abroad are subject to the permission of the Board on condition not to establish branch or credit card system, issue cards and sign merchant agreements.

(2) The following shall be enclosed to the application to be submitted to the Agency for opening representative offices by card system organizations which are established abroad;

a) Articles of association of card system organization,

b) Balance sheet and activity reports showing that it has been operating for minimum three years as well as financial statement reports of authorized independent audit companies,

c) Document received from related official authority showing that there are not any limitations on operations of card system organization,

ç) Copies of resolution for opening representative office in Turkey received from authorized boards,

d) Detailed resumes of the representatives to be appointed which also includes the information on whether or not they have had a duty in a financial entity in the last ten years,

e) Report analyzing the benefit expected from opening of representative office,

f) Detailed information and documents on partners of the card system organization, its organization and organization structure out of the country it’s established, its activities in international financial markets as well as the report prepared on the card system organization by internationally accepted rating companies which also includes the foreseen rating, if any,

g) Letter of commitment for the submission to the Agency of the reports relating to the inspection to be made every year by one of the authorized independent audit companies pursuant to the legislation of the country in which the headquarter of card system organization or financial institution is established.

(3) The Agency is authorized to ask additional information and documents which it deems necessary for the implementation of this regulation, furthermore, by the Board resolution, it is authorized to ask for the information and documents stated in this article in different scope and contents.

Opening up branches or representative offices, establishing partnerships or participate in the established partnerships abroad of card organizations established in Turkey

ARTICLE 9 – (1) Opening up branches or representative offices, establishing partnerships or participate in the established partnerships abroad, of card organizations established in Turkey are subject to the permission of the Board. Permission applications are made to the Agency together with a detailed report explaining the grounds for opening up branches or representative offices, establishing partnerships or participate in the established partnerships abroad. Applications to be made by card organizations which can not realize the standard ratios in effect or having limitations on their organizations are not put into process.

(2) In order for grant permission to the demand of card organization for opening up branches abroad, establish partnerships or participate into established partnerships, there must not be any obstacles in regulations and implementations of the country in which the branch or partnership is existing, for the Agency to provide the information and documents it requires within the scope of supervision and surveillance activities of the Agency and carrying out audit in the mentioned branches and partnerships.

Taking Operating License of information sharing as well as clearing and settlement transaction organizations

ARTICLE 10 – (1) The following shall be enclosed to the applications to be made to Agency by information sharing as well as clearing and settlement transaction organizations;

a) Articles of association of information sharing as well as clearing and settlement transaction organizations,

b) Detailed feasibility report analyzing the benefit expected from the establishment of information sharing as well as clearing and settlement transaction organizations as well as estimated balance sheet and profit/loss statements showing three-year targets,

c) Detailed information and documents on partnership, organization and organization structure, technologic infrastructure as well as the report prepared on information sharing as well as clearing and settlement transaction organization by internationally accepted rating companies which also includes the foreseen rating,

Operating license or permission for opening up branch or representative office in Turkey

ARTICLE 11 – (1) Operating license or permission for opening up branch or representative office in Turkey is given by the resolution made by the same-direction votes of at least five members of the Board. The Board analyzes whether or not the capital of card organization, information sharing as well as clearing and settlement organizations applied for operating license is paid free of collusion and in cash, has adequate technical equipment and personnel to carry out its operations, has adequate number of executive personnel and having the legal obligations, required regulations for the management of the organization and internal system and the Board grants the operating license.

(2) Operating license resolution comprises the activities of establishing card system, card issuing, and signing merchant agreements for card system organizations while it comprises card issuing and signing merchant agreements for card issuing organizations.

(3) Pursuant to the notification to be made by the Agency before the publication of the operating license in Official Gazette, the document showing that the amount corresponds to the five percent of minimum capital determined in Article 4(2d) of the Law as entrance share to the system is deposited to the Agency’s account before starting to its activities as well as the document showing financial activity permission document fee obligation is fulfilled shall be submitted to the Agency.

(4) In cases one of the following cases occur; that card system, card issuing, signing merchant agreements, information sharing as well as clearing and settlement organizations loose the conditions in the Law and Regulation required for taking operating license, the determination of the fact that its license was taken through misstatements, not started operating in six months following it took the license or it did not operate non-stop for six months in a year, the Board may revoke the operating license relating to the activities within the scope of this Law.

(5) Resolutions relating to granting operating license as well the reasoned decision relating to the cancellation of licenses granted are published in the Official Gazette.

Amendments to articles of association as well as share acquisition and transfers

ARTICLE 12 – (1) The Agency’s assent is required for the amendments made to the articles of association of card, organizations, information sharing as well as clearing and settlement organizations. Amendments which are not deemed appropriate by the Agency can not be adjudicated in the general assembly. Amendments of articles of association made without the ascent of the Agency can not be registered to Trade Register. Applications for license, approval or ascent for amendments to articles of association which are foreseen in this Law and other legislation are responded by related authorities within fifteen days.

(2) A person obtaining shares in a card institution representing ten percent or more of the capital by direct or indirect shareholding, or share acquisitions resulting that direct or indirect shares belonging to a partner exceed ten percent, twenty percent, thirty-three percent or fifty percent of the capital as well as share transfers resulting that shares belonging to a partner drop below these ratios are subject to Board permission.

(3) Establishment, transfer of shares giving the privilege to determined member of management board, as well as issuance of new privileged shares are subject to Board permission regardless of the proportional limits mentioned above. Transactions causing the number of partners to fall below five and shares transfers realized without permission shall not be registered on the stock register. Records made on the stock register in defiance of this provision are invalid. This provision is applied in obtaining right to vote and establishing of usufruct on shares.

(4) In share transfers subject to permission, the partners who will obtain these shares shall carry the qualifications searched for in founders. Partners having this rate of shares and who have lost the qualifications searched for in founders cannot benefit from partnership rights other than dividend.

(5) In applications for share transfer or share acquirement of card institutions to be made to the Agency pursuant to the Article 6 of the Law, it is obliged to attach following documents;

a) Declarations of transferees, to be organized according to the examples in annex-1 and annex-2 and to be signed in the presence of a notary public,

b) Documents showing that the transferee natural persons or legal entities are not bankrupt, there are no postponement of bankruptcy decision made regarding them and documents for legal entities showing that their application of restructuring by settlement are not approved to be received from Commercial Court of First Instance, documents showing that they have not announced composition of debts to be received from Enforcement Courts,

c) Judicial records of trasnferee natural persons including the archive records received within the last six months,

ç) A declaration declaring that they are not shareholder with ten percent or more direct or indirect shares in banks subject to liquidation or in banks transferred to the Saving Deposit Insurance Fund (annex-3),

d) A declaration declaring that natural persons or legal entities taking over the shares are not shareholders in brokers, insurance companies and institutions operating in monetary and capital markets which are held subject to settlement, with ten percent or more direct or indirect shares (annex-3),

e) Decision models concerning the legal entities to take over the shares to be partners in card institution to be received from authorized institutions,

f) Commercial Registry Gazette concerning the establishment of the legal entities taking over the shares, lists showing their partners, share proportions and amounts as well as privileged shares if any, detailed explanations concerning their field of operation, investment and business fields and a report including the balance sheets and profit and loss statements approved by authorized sworn financial advisors pursuant to the Law number 3568 and for legal entities qualified as banks or other financial institution, rating prepared by internationally approved rating agencies if any, including also the estimated rating,

g) Consolidated balance sheets and profit and loss statements for the last three years, if any, in accordance with international accounting standards and approved by an independent audit company internationally accepted, belonging to capital group to which the legal entities taking over the shares are included,

ğ) A report concerning the financial conditions of persons taking over the shares, prepared by authorized sworn financial advisors pursuant to the Law number 3568,

h) Documents showing that the persons taking over the shares have no due tax or premium debts to be received from related tax offices and Social Security Institution,

i) Documents with different dates each, addressing to the Agency by related banks, within the aim of certifying the information concerning the deposit and credit accounts of the persons taking over the shares,

j) Detailed CVs of natural persons taking over the shares and natural person partners owning ten percent or more of the capital of legal entities taking over the shares, including also the information concerning if these persons were employed in a financial institution within the last ten years,

k) Examples of letters of attorney given to authorized person(s) representing the natural persons and legal entities taking over the shares,

l) Explanation concerning the sources to be used in the purchase of shares,

m) An example of the contract concerning share transfer,

n) Commitment letter to be arranged and signed according to the example within the annex-4 and declaring that the persons taking over the shares have procured the source used in this purchase by their own commercial, industrial and other legal activities and free and clear of all kinds of simulation,

o) Lists showing the privileged shares of legal entities and their legal entity partners taking over the shares.

(6) In the applications to be made to the Agency concerning all share receiving or share transfer operations of information exchange and exchange and settlement institutions, it is obliged to attach the resolution examples taken from authorized institutions concerning the share receive of the related institution.

(7) The provisions of this article are applied for persons with foreign nationality.

(8) The Agency may request additional information and documents deemed necessary for the application of this Regulation and also may request the information and documents within this article in another scope and contents by Board Resolution.

(9) Even if there isn’t any share transfer, establishment of privileges on present shares, or cancellation of privileges and issuance of dividend shares are subject to Board permission.

Indirect Share Holding

ARTICLE 13 – (1) Principles and procedures to be applied in determining the direct or indirect shareholding of a natural person or legal entity in the capital of a card institution or in information exchange, exchange and settlement institution established or will be established in Turkey are cited below:

a) Partnership structures of legal entity partners holding shares or will take over shares in the card institution and their legal entity partners, if any, shall be detected successively until the natural persons are reached, if necessary.

b) Indirect share holding ratio by legal entities in a card institution’s capital shall be calculated by multiplying the participation ratios. In case same persons participate directly to legal entities within steps, this direct participation ratio shall be calculated by adding it to the ratio reached until that step before the following multiplication.

c) In the determination of indirect shareholding of a natural person, shares belonging to this natural person as well his/her spouse and children, the partnerships to which they have participated with unlimited responsibility or partnerships of which capital and management are controlled by this person or partners separately or together shall be taken into consideration. In determination of indirect shareholding of legal entities, the shares belonging to them and shares belonging to partnerships of which capital and management are controlled by them shall be calculated together.

(2) Indirect share transfer and similar indirectness determination and evaluation to be made according to the Law on the capital of card institution concerning the capitals of shareholder legal entities, except for the subjects explicitly regulated within the legislation, the capital of legal entity partner is considered as a basis instead of the capital of card institution and it is done according to the provisions within the first paragraph of this article.

(3) Direct or indirect control of a legal entity’s capital or management by a natural person or a legal entity means that the majority of legal entity’s capital is owned directly or indirectly or the majority is not owned but the privileged shares are owned so the majority of votes is owned pursuant to the contracts made with other shareholders or the power to assign or dismissal the majority of management board members by any means is owned.

Dependent on the partnership structure of the legal entity, the condition to have at least fifty-one percent of the shares to have the majority of the capital is not searched.

SECTION THREE

Management

Management Board

ARTICLE 14 – (1) The management boards of card institutions, information exchange and clearance and netting institutions shall not be composed of less than five persons. The conditions searched for in general manager are also searched for one plus the half of management board members. It is obliged that the managing members carry the conditions searched for in general manager. The positions of general manager and management board chairmanship cannot be carried out by the same person. It is obliged that the management board members carry the conditions cited within first paragraph sub-clauses (a), (b), (c) and (d) of article 8 of the Banking Law number 5411 dated October 19, 2005.

(2) In the managerial centers of card system institutions established abroad and operating in Turkey by branches, a board of managers composed of at least three persons including the manager of central branch, having the authority and responsibilities of the management board. In the application of this Regulation, the board of managers is equivalent to the management board, and the conditions cited within the first paragraph are also searched for the members of board of managers.

(3) (Amended: OG-1/8/2009-27306) Establishing the operability, suitability and adequacy of the internal control, risk management and internal control systems of card institutions, information exchange and clearance and netting institutions is the responsibility of the management board, as well as securing the financial reporting systems and determining the authorities and responsibilities inside these institutions.

General Manager and Assistant General Managers

ARTICLE 15 – (1) It is obliged that the general managers of card institutions have an undergraduate degree on law, economy, finance, banking, business, public administration and equivalent departments; if they have an undergraduate degree in other fields, they must have a graduate degree in the mentioned departments, and they must have an experience for at least twelve years in the field of finance.

(2) At least two thirds of the assistant general managers of card institutions must have an undergraduate or graduate degree on the fields cited within the first paragraph and they must have an experience for at least seven years in the field of finance.

(3) (Amended: OG-1/8/2009-27306) General managers of information exchange institutions and clearance and netting institutions must have an undergraduate degree on law, economy, finance, banking, business, public administration or information technologies and equivalent fields; if they have an undergraduate degree on other fields, they must have a graduate degree on these fields and they must have a professional experience for at least ten years. Minimum two thirds of assistant general managers must have an undergraduate or graduate degree on the mentioned fields and they must have professional experience for at least seven years.

(4) Even if they were employed under different titles, other managers which are equivalent to assistant general manager or which have executive duties in higher positions by their authorities and responsibilities are also subject to the provisions of this Regulation regarding assistant general managers.

(5) It is obliged that the ones to be assigned as general manager or assistant general manager are notifies to the Agency with the documents showing that they carry the conditions cited in this article. If the Agency does not declare negative opinion within the ten working days as of the date of notification, these persons may be assigned.

(6) The reasons of resignation of general managers and assistant general managers who have resigned for any reason shall be notified to the Agency by the related institution and the person who have resigned within the seven working days.

Notifications concerning general manager, assistant general managers and management board members

ARTICLE 16 – (1) Concerning the persons who will be assigned as general manager or assistant general manager to card institutions, information exchange, clearance and setting institutions, following documents shall be sent to the Agency before the assignment:

a) Documents to be received from related judicial authorities proving that they are not bankrupt or they have not effected a composition,
b) Judicial records including archive records,

c) (Amended: OG:14/01/2011-27815) Except for those of whom ID and address information can be reached on electronic environment using the systems built within the scope of Law on Population Services Nr. 5490 dated April 25, 2006, ID cards for persons with foreign nationality or a notarized copy of their passports as well as their certificate of residence,

ç) Detailed CVs,

d) Notarized copies of undergraduate and if any, graduate diplomas.

(2) In case one or more documents cited within the sub-clauses (a) and (b) of the first paragraph are not provided for foreign persons due to the absence of authorities or systems in which the judicial records, bankruptcy and composition records of the related country are kept, this situation shall be certificated with a document to be received from the competent authorities and shall be notified to the Agency.

(3) The assignment may be done if the Agency does not declare negative opinion within the ten working days following the demise of all the documents mentioned above to the Agency.

(4) The persons elected for management board membership and those who are assigned to any vacant positions shall be notified to the Agency within fifteen days with the documents cited in the first paragraph of this article.

SECTION FOUR

Form of the Contract and General Transaction Conditions

Conditions of the Contract

ARTICLE 17 – (1) The relations between card issuing institutions and card owners shall be established with written contracts to be put down on paper with bold pica characters to be prepared within the frame of the Law and other related legislation. An example of the contract shall be given to the card owner and to the co-signor, if any.

(2) It is obligatory that banking card owners are notified in written on the following subjects on the delivery of the card:

a) The responsibility of card owner starts as of the delivery of the card and the place of signature of the card shall be signed by the card owner,

b) Card owner shall protect his/her card and pin code information necessary for the usage of the cars safely and shall take necessary measures to prevent other persons to use these information; in case these information are lost or stolen or any transaction is made without his/her knowledge, this situation shall be notified to the institution issuing the card,

c) Card owner will be responsible for the losses rising from illegal usages realized within twenty-four hours before his/her loss or stolen notification, to be limited to one hundred and fifty New Turkish Liras; this limit will not be applied if the notification was not made,

ç) Principles and procedures concerning the insurance of responsibility of the card owner amounting one hundred and fifty New Turkish Liras,

d) Procedures concerning the determination of the exchange rate to be applied by bank in FX transactions and the procedures for reflecting of this rate to the extract of account,

e) Necessary measures shall be taken to prevent that the pin code does not obtained by third persons and the pin code shall not be shared with third persons,

f) Methods and channels to notify in case of loss or thievery,

g) Methods and channels to receive detailed information concerning the usage of card,

ğ) Fees, commissions and costs specified in the contract will be recorded as debts on the account of the card owner,

h) Card owner shall notify the changes in his/her address and other communication information within the fifteen days following the date of change.

(3) It is obligatory to notify the card owner in written about the following subjects on the moment of deliverance of the card:

a) Subjects within the second paragraph,

b) Card limit,

c) Interest rates on the date of arrangement of the card,

ç) In case the debt of the period is paid partially, interest will be calculated upon the remaining balance of accounts; if minimum amount and more is paid to the remaining balance conventional interest will be applied, if the payment is under the minimum amount, default interest will be applied for the part not paid of the minimum amount, and conventional interest will be applied for the part of the balance of account exceeding the minimum amount; compound interest will not be applied in debts emanating from card applications,

d) Methods and channels to learn and pay the card debts,

e) (Amended: OG-17/12/2010-27788) The minimum amount to be paid cannot be lower than; twenty-five percent of period debt for credit cards with a limit up to TL 15.000, thirty percent of period debt for credit cards with a limit from TL 15.000 to TL 20.000, forty percent for credit cards with a limit up to TL 20.000 and higher and for new credit cards, forty percent of period debt as of the date of beginning to use until the end of one-year period.

(4) Following provisions shall take part in banking card contracts;

a) The responsibility of the card owner starts on the moment when the card is received or even if it is not received physically, when its number is learned,

b) Explanations concerning the fees, commissions, costs and taxes which may be demanded from the card owner dependently on the card usage as well as their amounts and a notification specifying that no fees, commissions, costs and taxes can be demanded from the card owner other than declared on the contract and no cut backs can be made from his/her account,

c) Principles of determining the exchange rate to be applied by the bank for FX transactions,

ç) Card owner must protect the card and card pin code safely and must take necessary measures to prevent these information to be used by other people; in case these information are lost or stolen or when he/she learn that they are used beyond his/her control he/she must immediately notify the institution issuing the card,

d) Card owner is responsible for the amount limited to one hundred and fifty New Turkish Liras emanating from the illegal usage realized within the twenty-four hours before the notification of the institution issuing the card,

e) If the illegal usage is caused by card owner’s negligence or intent or if the notification is not made within the twenty-four hours, this limit will not be applied,

f) Card owner may demand to insure the legal responsibility amount emanating from the loss caused by illegal usage realized twenty-four hours before the notification, on condition to pay the related insurance premium,

g) In case the card or the card pin code necessary to use the card are lost or stolen, the banking card owner is responsible for the transactions made twenty-four hours before the notification,

ğ) Card owner is responsible for notifying the changes occurred in his/her address information within fifteen days as of the date of change, to the institution issuing the card and if he/she does not notify the address changes within the mentioned period, the notifications made to his/her old address will be valid,

h) Conditions for ending and cancellation of the contract.

(5) Credit card contracts must include following provisions;

a) Subjects specified within the fourth paragraph,

b) Card limits cannot be raised unless the permission of the card owner is taken,

c) Explanations concerning the fees, commissions, costs and taxes which may be demanded from card owners dependent on the contract as well as their amounts and a notification specifying that no payment can be demanded from the card owner other than the ones specified within the contract and no cut backs can be made from his/her account,

ç) Conventional and default interest rates to be applied cannot be higher than the maximum rates specified by the Central Bank of the Republic of Turkey,

d) Compound interest cannot be applied,

e) Pursuant to the article number 26 of the Law, the date of transaction shall be taken as a basis for the starting date of the interest for debts concerning cash usages,

f) If the card limit determined by the institution issuing the card pursuant to the article 9 of the Law is exceeded outside the institution’s initiative, due to the expenses of the card owner or if the card limit is exceeded on condition that the exceeding fee does not pass twenty percent of the limit established and closed on the following accounting period, and limited to two times during a calendar year, conventional interest will be applied to the exceeding part for the period between the date of transaction and the date of payment,

g) The increase in interest rates shall be notified to the card holder thirty days earlier and card holder will not be effected by the interest increase provided that the debt is fully covered and the card holder ceased to use the credit card in sixty days at the latest after the interest rate notification date,

ğ) Principles for determining the exchange rate to be applied by the bank in transactions made in terms of foreign exchange and reflecting these principles on the abstract account,

h) (Amended: OG-17/12/2010-27788) Minimum amount that is required to be paid cannot be less than twenty five per cent of period debt about credit cards having credit limit up to TL 15.000, thirty per cent of period debt about credit cards having credit card limit between TL 15.000 to TL 20.000, forty per cent of period debt about credit cards having credit limit by TL 20.000 and more and forty per cent of period debt in credit cards collected recently beginning from commencement of usage until one-year period expires and the bank may determine minimum payment amount not less than this amount,

ı) Legal results of the debtor going in default,

i) In case a voucher is taken, for the conditions stated below that are required to be included in contract or contract of surety;

1) Default for the voucher shall start after debt of card holder is notified to him,

2) The guarantee is subject to the ordinary guarantee provisions of The Code of Obligations dated April 22, 1926 Nr. 818 and discharge of debts cannot be required from the voucher unless the principal obligator is appealed and all collection methods are implemented,

3) Changes that shall increase the obligation of the voucher in current contract provisions and validity of the increase in card limit for the voucher depends on written approval of the voucher,

j) If any, type and quality of guarantee, on which circumstances to use the guarantee, returning conditions of the guarantee to the customer.

Contract changes

ARTICLE 18 – (1) Changes to be made in credit card contracts are notified to the card holder by an abstract account. These changes are in force beginning from the payment due date concerning the period the notification has been made. In case the card continues to be used after the payment due date concerning the period the notification belongs to, it is deemed that the changes in the contract has been accepted. In case interest rates are increased, it is obligatory that it is notified to the card holder thirty days earlier in order this change is in force. Changes are indicated in abstract account by using pica. In case card holder pays off all of his debt and ceases to use the credit card in sixty days at the latest beginning from notification date concerning interest increase, he is not affected by the interest increase.

(2) Card holder has the right to cancel the card and terminate the contract by filing a demand. It is obligatory that the demand made by the card holder to cancel the card and terminate the contract is fulfilled by the card issuing organization in seven days at the latest. (Amended: OG-17/12/2010-27788) In demands made via branches concerning card withdrawal, it is obligatory that a copy of a document signed by branch authorities on when this demand has been received or filled out termination form is submitted to the card holder.

Abstract account

ARTICLE 19 – (1) It is obligatory that abstract accounts to be submitted to card holder shall include information on;

a) Name, surname and address of card holder,

b) Period debt concerning transactions made with the credit card,

c) Total credit card limit,

ç) Statement date,

d) Payment due date,

e) Next statement date and payment due date,

f) Minimum amount that is required to be paid,

g) Amounts and dates of cash withdrawal transactions or goods and service purchases made with the credit card,

ğ) Contractual rate of interest applied to credit cards,

h) Default interest rate applied to credit cards,

ı) Amounts of annual charge, interest and any other fees and commissions accrued in the related abstract account concerning credit cards,

i) Currency type and amount of foreign exchange subject to the transaction in transactions made by credit cards in terms of foreign exchange as well as monetary unit recorded as debt in the card’s account,

Interest calculation

ARTICLE 20 – (1) Records on interest can be applied upon total amount of debt or abstract account concerning an account period as of a date before statement date in which abstract account has been drawn up are null and void.

(2) Transaction date can be taken as a basis on debts concerning cash usage. Purchase of precious metal, stone and goods specified in Resolution on Protecting the Value of Turkish Lira Nr. 32 which entered into force pursuant to the Cabinet Decision dated August 7, 1989 Nr. 89/14391 and FX purchases, debt transfers the card holder made in order to pay off the debt of another credit card, all payments made to persons or institutions, gambling and chance games, stock exchange transactions/securities purchases, travel Cheques, transfer transactions can be considered as transactions within the scope of cash usage.

(3) In case a part of period debt is paid off, an interest is calculated upon the remaining abstract account. Contractual interest is applied to the remaining abstract account when a payment at minimum amount or more is made; default interest is applied for the unpaid part of the minimum amount when a payment below the minimum amount is made and contractual interest is applied for the part of the remaining abstract account exceeding minimum amount. Including default condition, no compound interest is applied in debts stemmed from card application.

SECTION FIVE

Obligations of Card Organizations

Issuing card and associated obligations

ARTICLE 21 – (1) Card issuing organizations in no case and for no reason issue a card to the name of a person who does not file a request or sign a credit card agreement nor deliver in any way including sending the pressed card to the address of the card holder or notifying the card number that do not exist.

(2) Card issuing organizations are obliged to take the necessary measures to keep this kind of information secret if using of cards requires a code number, card number, password or another method determining the identity and to prevent card number to appear on customer copy of expense and receivable document as well as on letters with the exclusion of transactions made by means of mechanic tool.

(3) Card issuing organizations are obliged to keep personal information they acquired confidential, not to use them with aims other than trading their services and take necessary measures so as to prevent those other than authorized person and institutions to reach these information.

(4) Card issuing organizations are obliged to establish appropriate control environment that would provide the confidentiality of information during the period until delivery of the card to the card holder, including printing the card, and take necessary measures against any violations that may occur.

(5) Card issuing organizations are obliged to take necessary measures to provide confidentiality of the information acquired by support service institution and prevent it to be used with other purposes in case services such as abstract account, card printing, card notice and certificate of receipt are carried out by procurement of support services.

Credit card limit

ARTICLE 22 – (1) Card issuing organizations are obliged to set a usage limit upon the evaluation they make by considering prohibition or obstacle situation, economic and social status, monthly or annual average income of the persons who want to get credit card, credit card limit allocated to these persons by other card issuing organizations, a model or scoring system results, information to be acquired from information exchange companies to be established pursuant to know your customer principles and article 27.

(2) Card issuing organizations may not increase credit card limits unless otherwise requested by card holders. Provided that an evaluation is made by card issuing organizations pursuant to the provisions of article 9 of the Law, a periodic limit increase may be done upon the general instruction received to be received from card holders via places and channels determined within the scope of the provisions of article 8 of the Law. Limit increases are valid unless card holder does not oppose to the notification to be made fifteen days before the increase shall be executed.

(3) Total credit card limit of a natural person granted for credit cards he obtained from all card issuing organizations cannot exceed, for the first year, twice of his monthly average net income and four times for the second year. In the implementation of this paragraph, monthly or annual average net income level, excluding limits up to New Turkish Lira one thousand, is determined upon incomes declared by card holder and confirmed by related institutions. In case annual average net income level may not be determined, total limit which card holder can acquire from all card issuing organizations is New Turkish Lira one thousand. Within the scope of provisions of this paragraph, evaluations that card issuing organizations shall make in line with declarations they receive and documents they obtain concerning social status, educational level, age, credit payment performance or assets of customers are considered as affirmation to be made by the related institution.

(4) In credit card applications, date of the first credit card limit granted is taken as a basis in determination of total credit card limit to be given to the card holder.

(5) Card issuing organizations are obliged to take measures for decreasing total expenditure amount from the card limit in case an installment is made in good and service purchases.

(6) (Amended: OG-17/12/2010-27788) Credit card limits to which a payment up to fifty per cent of period debt is made three times at most within a calendar year cannot ne increased until period debt is fully covered and these type of cards are closed for cash use.

Unlawful use of and insurance for card

ARTICLE 23 – (1) In the case of loss or theft of card or any of the information referred to in Article 16 hereof, the card holder will be held liable for the damages and losses caused by unlawful and unauthorized use of his card within twenty-four hours prior to a notice to be sent by him hereunder, subject to a limitation of one hundred and fifty New Turkish Liras. However, this limitation is not applicable in case of failure of the card holder in notification or in the event that the unlawful use of card is attributable to any gross negligence or malicious misconduct of the card holder.

(2) The card issuing organization is obligated to take out and maintain an insurance cover against liability of the card holder for the limit of one hundred and fifty New Turkish Liras as referred in the first paragraph hereof, upon demand of the card holder and subject to payment of the relevant insurance premiums and costs by the card holder. The card holder is free to transact insurance transactions via the determined insurance company, if the does not accept the insurance company opted by card issuing organization.

Information to be obtained by related institutions

ARTICLE 24 – (1) Information on;

a) Contractual interest rate, default interest rate, costs they collect or shall collect under the names of annual fees or other titles they apply on credit cards,

b) Sample interest calculations to be made having considered the to pay or failure to pay the minimum payment with the assumption that TRY thousand has been spent on credit card limit,

c) Information on monetary and other benefits furnished the credit card holders with,

(2) So as to keep within the structure of the Agency;

a) Number of card holders,

b) Cash credit amounts extended from credit cards and amounts for purchase of goods and services,

c) Total amounts projected to be collected by classifying credit card receivables stemmed from installment practice as up to 1 month, 1 to 3 months, 3 to 6 months, 6 to 12 months and longer than 12 months,

ç) Number of credit card customers transferred to follow-up accounts and amount of NPLs and accrued interest rate,

d) Number of credit cards having limit excess and total excess amount,

e) Number of credit card customers making payment below the monthly total debt amount but above minimum payment amount and residual debt amounts of these customers, number of credit card customers making payment below minimum payment amount and residual debt amounts of these customers,

f) Commission amounts obtained from member merchants

are submitted by card organizations monthly to the Agency so as to be announced in the website of the Agency.

Member merchants

ARTICLE 25 – (1) Member merchants cannot give away the information they acquired concerning card holder due to usage of card without written consent of the card holder excluding persons and institutions authorized by law, nor keep and copy under any circumstances whatsoever with the exception of information and documents kept for collection of periodic payments within the scope of information and documents kept for collection purpose concerning expenditure and written consent given by the card holder.

(2) Member merchants cannot share, sell, purchase and exchange the card information with/to persons and institutions other than the institution they made a member merchant contract with. Institutions making member merchant contract are obliged to secure the implementation of this paragraph.

Account and record system, financial statements and control in card issuing organizations

ARTICLE 26 – (1) Card organizations, information exchange and clearing and settlement institutions are obliged to prepare and publish financial reports in March, June and September and by the end of account periods within the scope of the Regulation on Procedures and Principles for Accounting Practices and Retention of Documents by Banks published in the Official Gazette dated November 1, 2006 Nr. 26333 and related other legislation.

(2) Related provisions of the Regulation on Measurement and Evaluation of Capital Adequacy of Banks published in the Official Gazette dared November 1, 2006 Nr. 26333, Regulation on Internal Systems of Banks, regulation on the Procedures and Principles for Determination of Qualifications of Loans and Other Receivables by Banks and Provisions to be set aside with the exception of Article 6(7) are applied to card issuing organizations.

(3) Financial Statements of card issuing organizations are subject to external audit within the scope of the provisions of the Regulation on Authorization and Activities of Institutions to Perform External Audit in Banks published in the Official Gazette dated November 1, 2006 Nr. 26333.

(4) Card organizations are obliged to prepare annual report consisting financial statements and external audit reports in line with the provisions of the Regulation on Procedures and Principles for Preparation and Publication of the Annual Report published in the Official Gazette dated November 1, 2006 Nr. 26333.

(5) Card organizations are subject to the provisions of the Regulation on Corporate Management Principles of Banks published in the Official Gazette dated November 1, 2006 Nr. 26333. The provisions of the Regulation on Corporate Management Principles of Banks relating to audit committee do not apply for card issuing organizations.

(6) Card organizations are subject to the provisions of the Regulation on Banks’ Procurement of Support Services and Authorization of Such Service Providers published in the Official Gazette dated November 1, 2006 Nr. 26333.

Internal control systems of information exchange, clearing and settlement institutions

ARTICLE 26/A- (Additional: OG-1/8/2009-27306) (1) Information exchange, clearing and settlement institutions are obliged to establish a sufficient and efficient internal control system so as to provide their activities are carried out in an efficient and productive way in accordance with the Law and the related legislation as well as intra-institution policies and rules and practices and to provide access of information on time.

(2) It is obligatory for obtaining the expected goal from internal control system that;

a) Practical duties within institution structure are established and responsibilities are distributed,

b) Internal control activities are created,

c) Business flow schemes on which controls upon business processes of the institution and business steps are prepared,

ç) Information systems are established in accordance with the structure and complexity level of activities,

(3) Internal control system and internal control activities and how these shall be executed are designed considering qualities of all activities. In projection of internal control activities, it is aimed that;

a) Information produced within the structure of the institution is precise, monitorable, coherent and in a form, quality and structure to meet the necessity,

b) All activities, transactions and products that have been carried out or shall be carried out comply with the Law and the related legislation as well as intra-institution policies and rules and practices.

(4) Authorities and responsibilities of all departments, personnel and committee within the institution is determined clearly and in writing by separating duties concerning activities on the same subject so as to prevent error and fraud, conflict of interest, information manipulation and waste of resources within the institution.

Establishment of information systems

ARTICLE 26/B- (Additional: OG-1/8/2009-27306) (1) Information systems to be established within the institution are configured in line with the scale of the institution, quality and complexity of its activities and products that are offered.

(2) Information systems are established in a way all related information is kept and used safely in electronic environment. It is obligatory that reliability of information systems is provided and updated regularly and necessary changes are made.

(3) Institutions are obliged to make plans to re-start activities and provide continuity and to test them periodically by considering opportunities of securing information systems without being exposed to any danger and providing support services on similar subjects so as to ensure activities continue uninterruptedly even when there are interruptions in information systems.

(4) The Board is responsible for determining the minimum procedures and principles for components and control of information systems of institutions.

(5) A data back-up center is established so as to prevent loss of current data due to unexpected situations. Information exchange, clearing and settlement institutions determine the location of data back-up center, provided that it is located in Turkey, in a way to be out of sphere of influence of urgent and unexpected situations having considered unauthorized access risks to data.

Risk management systems of information exchange, clearing and settlement institutions

ARTICLE 26/C- (Additional: OG-1/8/2009-27306) (1) Institutions shall determine written policy and implementation procedures for management of risks stemmed from their activities, risks that may damage risk evaluation process of the institutions they serve and the risks stemmed from their activities concerning clearing and settlement transactions of debts and receivables from card usage.

(2) It is obligatory that risk management policy and implementation procedures comply with the changing conditions. Board of directors evaluates sufficiency of these on a regular basis and makes necessary changes.

Internal Audit Systems in Information Exchange, Barter and Netting Institutions ARTICLE 26/Ç- (ANNEX: OG- 1/8/2009-27306)

(1) Information exchange, barter and netting institutions establish an internal audit system that shall establish assurance to administrative board, general manager and assistant general manager relating that the institution is applicable in the direction of the Law and other legislation concerned and internal strategy, policy, principle and aims and that efficiency and adequacy of internal management and risk management systems.

(2) For providing the expected benefit from internal audit systems, with internal audit activities; all activities are analyzed, and audited periodical without any limitations in-institution, deficiencies, faults and misuses are determined, suggestions and opinions are made relating to using efficient and productive the resources and preventing them to emerge again.

(3) In audits, the efficiency and adequacy of internal control and risk management systems and adequacy, efficiency and credibility of information systems are evaluated.

(4) Information exchange, barter and netting institutions, dependent on complexity, intensiveness, scope and riskiness level of the activities, employ adequate number of internal audit personnel with a view to fulfilling these services in required level and without negligence of audit services predicted in the Law and the legislation concerned and in-institution regulations. Institutions can provide internal audit services from institutions giving support services in this subject without employing internal audit personnel. But in case of there existed internal audit service to create the result of being competent to the secrets of bank’s customers or bank included within the scope of the article 73 of the Banking Law nr.5411, it is obligatory to fulfilling these services by employing internal audit personnel.

(5) Information exchange, barter and netting institutions provide internal audit personnel to perform their duty and responsibilities in objective and independent manner. Independency is provided with not having a responsibility of give an account of in any manner to managers of the units which enters into the scope of audit duties and responsibilities of internal audit personnel; objectivity is provided with being far away from conflict of interests emanated from the respects such as respects of personal or relationship of affinity in enforcement of duty of internal audit personnel.

(6) Educational background to be searched in persons to execute internal audit, experience information skills and other qualifications are determined by the board of management. Information, skills and abilities of which internal audit activities require have to be taken into account in determining these qualifications. The person that shall execute audit of information technologies of the institution have to have minimum information and skill that can be proved by training certificates they took or by education field in information technologies and audit techniques dependent on information technologies and information technologies.

SECTION SIX

Miscellaneous and Final Provisions

Information Exchange, Barter and Netting Transactions

ARTICLE 27 – (1) Information exchange ,to be made with a view to fulfill monitoring of risk states of card holders, evaluating and controlling them, and customer services, by using tin number or citizenship numbers, are acquired by the mediation of information exchange firms to be established by institution issued at least five cards which the membership of institutions issuing cards is obligatory or between themselves within the scope of written agreement that institutions issuing cards shall negotiate between each other.

But, in case of the firms to be established relating to exchange of information be more than one, it is obligatory to also to take information from all firms except the firm having membership. Natural and legal entities are benefited in return for wage from the systems to be established relating to information exchange.

(2) clearing and barter transactions of debt and receivables emanating from usage of cards are realized , by the mediation of firms to be established by institution issued at least five cards ,or in between each other within the scope of written contracts that the institutions issuing cards shall contract in between each other.

Respects relating to technical substructure

ARTICLE 27/A – (1) (Annex: OG-21/12/2008-27087) Institutions making card acceptor agreement provide to fulfill the requirements of current version of PIN Entry Device -PED- Security Requirements standard published by Payment Card Industry -PCI- Security Standards Council in minimum, of POS to be used in payment with card transactions within the scope of due date which the system with card institutions have defined.

(2) POS, fulfill the following functions in minimum with security mechanisms it has;

a) It carries the required measures for providing being protective of firmware included on it and each kind of soft ware such as implementations belonging to institutions made card acceptor agreement against access without authorization and by persons, except institutions made card acceptor agreement or persons charged by them.

These measures include also remote software downloading and software updating activities to POS. POS removes software which it does not approve the resource or integrity without putting into operation. The access to cryptographic keys on POS and sensitive functions processing these keys are provided with identity validation controls.

b) POS prevent the unauthorized electronic or physical access to sensitive data relating to cards which are subject to transaction.

(3) Institutions made card acceptor agreement subject their software processing on POS in use to integrity and validity test they determine, provided to be compatible to aim, within the scope of a period they shall determine.

(4) Institutions made card acceptor agreement compose a written and auditable process relating to updating and loading software belonging to them on POS, hold documentation in required details relating to process of period, make certification in level to compose guarantee relating that functions not recorded in written or hided in software belonging to them or unauthorized were not contained in POS. The responsibility of establishing a similar structure for software fulfilling main function of POS such as operating system, firmware which included on POS is belonging to the said institution in case of POS belongs to an institution made card acceptor agreement, otherwise to the institution made card acceptor agreement to be determined by a POS owner authority.

(5) Place of business made card acceptor agreement, except the transactions within the scope of the article 20 of the Banking Law and states where bank cards or credit cards are used on a device by card holder directly physically, establish the sub structure to provide the card to be subject to any transaction on a device except mechanical devices arranging spending or cash payment document in cases where there exist any POS or POS usage. Place of business made card acceptor agreement can not establish a system keeping sensitive data, recording, processing relating to cards on sub structure providing a connection with institutions’ systems made card acceptor agreement of POS. Institutions made card acceptor agreement take into account of provisions on codifying of Payment Card Industry -PCI- Data Security Standard -DSS- in minimum level in own system of POS and data communication. Institutions made card acceptor agreement are obliged to monitor the including and executing the said paragraph of the article.

(6) The part corresponding to minimum data set of which place of business made card acceptor agreement shall require from data read from credit card or bank card processed on POS are transferred on external connection interface of POS on condition to take into account of respects of privacy violation in case of capturing the said data set by unauthorized persons or not causing to provide unfair advantage. Transfer transaction is made in format and shape to be determined in between parties by the software included on POS of institutions made card acceptor agreement.

(7) Institutions made card acceptor agreement and place of business made card acceptor agreement establish card usage sub structure in including 3D secure card holder affirmation technology with other precautions for the transactions realized by using internet and initiated by card holder who do not have opportunity to arrange expenditure and receivable document.

While making obligatory the usage of the said sub structure in transactions to be realized within the scope of the said paragraph are dependent on the preference of institutions made card acceptor agreement and place of business made card acceptor agreement, in case of not making it obligatory, the usage is dependent on the preference of card holder. Parties except card holders within the scope of Law inform the card holders regarding method brought by the said paragraph.

(8) A structure to provide the working of institutions made card acceptor agreement implementation in maximum number on the same POS is composed by institutions made card acceptor agreement on condition to reserving the provisions of the contract to be made in between the parties as to technologic opportunities capacities and providing uninterrupted service criteria of POS used, besides the respects such as easier establishment of security sub-structure, decreasing operational difficulties to the minimum and productive usage of resources.

Provisions not applicable to banks

ARTICLE 28 – (1) provisions relating to article 5, 8, 9, 11, 12, 13, 14, 15, 16 and 26 of the Regulation on Banks are not applicable.

Adaptation

ARTICLE 28/A- (Annex:OG-17/12/2010-27788) Excluding credit cards to be newly allocated following the publication date of this Regulation, minimum payment amounts included in the Article 17(3)(e)(h) of this Regulation are applicable as follows;

a) Concerning credit cards which their limit is up to TL 5.000, 20% up to the end of 12^thmonth, 22% up to the end of 12^th month to 24^th month as of the publication date of this Regulation,

b) Concerning credit cards which their limit is up to TL 5000 to TL 15.000, 20% up to the end of 6^thmonth, 22% up to the end of 6^th month to 12^th month, as of the publication date of this Regulation,

c) Concerning credit cards which their limit is up to TL 15.000 to TL 20.000, 20% up to the end of 6^thmonth, 22% up to the end of 6^th month to 12^th month, 25% up to the end of 12^th month to 18^th month, 28% up to the end of 18^th month to 24^th month as of the publication of this Regulation,

ç) Concerning credit cards which their limit is up to TL 20.000 and above, 20% up to the end of 6^th month, 22% up to the end of 6^th month to 12^th month, 25% up to the end of 12^th month to 18^th month, 28% up to the end of 18^th month to 24^th month, 30% up to the end of 24^th month to 30^th month, 35% up to the end of 30^th month to 36^th month as of the publication of this Regulation. Following the due date determined above, minimum payment rates are applicable included in the article 17(e)(h) of this Regulation.

Entry into Force

ARTICLE 29 – (1) (Amended: OG-21/12/2008-27087)

a) First paragraph of 27/A enters into force in January 01, 2009, paragraph 4,5,6,8 of this article in January 01, 2010, paragraph 3,7 in January 01, 2011, and paragraph 2 enters into force in January 01, 2014
b) Other articles of this Regulation enter into force as of the publication, to be valid as of March 01, 2007

Enforcement

ARTICLE 30 – (1) The provisions of this Regulation are enforced by the Chairman of the Banking Regulation and Supervision Agency.

Annex-1

DECLARATION RELATING TO CARD ORGANIZATION FOUNDERS, SHAREHOLDERS/ PERSONS TO TAKEOVER SHARE (LEGAL ENTITIES)

OF THE LEGAL ENTITY
TITLE :
CENTER AND DATE OF ESTABLISHMENT :
CAPITAL : (EXPLANATION)
ADRESS :
SUBJECT OF ACTIVITY :
CERTAIN BALANCE SHEET SIZES RELATING TO LAST FIVE YEARS (TL)
YEAR			NET PROFIT (LOSS) (1)				OWN FUNDS				TOTAL ASSET





THEIR SUBSIDIARIES (2)
	TITLE OF FIRM				ACTIVITY TYPE				CAPITAL				AMOUNT OF SHARE
1
2
3
4
5
6
7
8
REAL ESTATES THEY OWN (3)
		PLACE		TYPE		PLOT		BLOCK		PARCEL		ENCUMBRANCES
1
2
3
4
5
6
7
8
SECURITIES (DETAILED) (4) (5)

DETAILED INVENTORY OF LIABILITIES THAT CONTRACTED CAPITAL SHALL BE COVERED
1
2
3
4
5
BANKS TO WHICH THEY WORK (6) (7)		1	2		3		4		5
NAME OF THE BANK
NAME OF THE BRANCH
DEPOSIT(TL)
TIME DEPOSIT
AT CALL
LOAN (TL)
AMOUNT
GUARANTEE
TYPE
MATURITY
		6	7		8		9		10
NAME OF THE BANK
NAME OF THE BRANCH
DEPOSIT (TL)
TIME DEPOSIT
AT CALL
LOAN(TL)
AMOUNT
GUARANTEE
TYPE
MATURITY
THEIR DEBTS TO OTHER NATURAL AND LEGAL ENTITIES EXCEPT BANKS (8)
	NAME OF CREDITOR			OF THE RECEIVABLES
				TYPE		AMOUNT		MATURITY
1
2
3
4
5
IMPORTANT WORKS THAT THEY REALIZED BEFORE IN ACTIVITY FIELD

WHETHER NATURAL END LEGAL ENTITIES’,HAVING MORE THAN 10% OF THE FIRM OR FIRM CAPITAL, LOAN USED FROM FOREIGN BANKS OR DOMESTIC BANKS IN LAST FIVE YEARS TAKEN LEGAL PROCEEDINGS OR NOT:

DETAILED EXPLANATION ON IMPORTANT LEGAL DISPUTES WHICH THE FIRM IS STILL PARTY :

SIGNITURE :

DATE: ……/……/……

EXPLANATIONS :

Amount following setting aside tax provision shall be written.
It is filled if the participation rate is 5% or more of the capital of firm participated.
All real estates owned, if exists with their encumbrance, shall be written to this part.
Bond, bills, gold, precious stone and metals, etc. shall be written to this part with encumbrances if exists.
Share certificates belonging to subsidiaries shall be excluded.
If the loan more than one type, from the same bank, is used, it must be presented separately.
In case of working with more than one branch of the same bank, it must be presented separately.
Debts amounting to 5% or more of firm’s capital shall be written.

Insurance cost of insured assets shall be indicated additionally.

NOTE: Annex form can be used in case of parts reserved in the form are not enough.

Annex-2

DECLARATION RELATING TO CARD ORGANIZATION FOUNDERS, SHAREHOLDERS/ PERSONS TO TAKEOVER SHARE

(NATURAL PERSONS)

NAME-SURNAME :										Photo
PLACE OF BIRTH AND DATE :
NATIONALITY :
NAME OF MOTHER :
NAME OF FATHER :
RESIDENCE ADRESS :
STATE OF EDUCATION : (Detailed)
NAME AND ADRESS OF BUSINESS CURRENTLY WORKED :
PROFESSION AND DUTY TITLE:
T.R IDENTITY NUMBER / TIN NUMBER :
PLACE OF BUSINESS PREVIOUSLY WORKED
	TITLE OF PLACE OF BUSINESS (1)				DATE OF ENTRY-LEAVE			DUTY TITLE
1
2
3
4
INCOME TAX BELONGING TO LAST FIVE YEARS AND INCOME TAX PAID (TL BILLION)
YEAR			NET INCOME			INCOME TAX PAID





FIRMS BEING SHAREHOLDER (2)
		TITLE OF FIRM		ACTIVITY TYPE			CAPITAL		SHARE AMOUNT
1
2
3
4

REAL ESTATES OWNED (3)

PLACE

TYPE

PLOT

BLOCK

PARCEL

ENCUMBRANCES

SECURITIES (DETAILED) (4) (5)

DETAILED INVENTORY OF RESOURCES OF WHICH CAPITAL SUBSCRIBED SHALL BE FINANCED

OTHER ASSET OWNED

BANKS WORKED (6) (7)

NAME OF BANK

NAME OF BRANCH

DEPOSIT (TL)

TIME DEPOSIT

AT CALL

LOAN (TL)

AMOUNT

GUARANTEE

TYPE

MATURITY

NAME OF BANK

NAME OF BRANCH

DEPOSIT (TL)

TIME DEPOSIT

AT CALL

LOAN (TL)

AMOUNT

GUARANTEE

TYPE

MATURITY

DEBTS TO OTHER NATURAL AND LEGAL ENTITIES EXCEPT BANKS

NAME OF CREDİTOR

OF RECEIVABLE

TYPE

AMOUNT

MATURITY

IT WAS APPLIED FOR SHOWING WHICH OPERATION IN FINANCIAL SECTOR BEFORE IN TURKEY OR IN ANOTHER COUNTRY; THE REASONS IF THE APPLICATION WAS REFUSED OR THE AUTHORIZATION GRANTED WAS CANCELLED (8):

IF IT WAS TAKEN LEGAL PROCEEDINGS DUE TO LOANS IT HAS USED FROM DOMESTIC OR FOREIGN BANKS OR FROM OTHER FINANCIAL INSTITUTIONS OR DUE TO OTHER FUNANCING RESOURCES IN LAST FIVE YEARS:

WHETHER THE FIRMS BEING PARTNER HAVE TAKEN LEGAL PROCEEDINGS DUE TO LOANS USED FROM DOMESTIC OR FOREIGN BANKS OR OTHER FINANCIAL INSTITUTIONS IN LAST FIVE YEARS:

IF THERE EXIST ANY PUBLIC PROSECUTION FILED OR NOT; IF THERE EXIST SUBJECT OF THE COURT CASE:

IF THERE EXIST ANY COURT CASE FILED OTHER THAN PUBLIC PROSECUTION; IF THERE EXIST SUBJECT OF THE COURT CASE:

NAME-SURNAME, ADRESS AND TELEPHONE NUMBERS OF TWO PERSONS THAT CAN FURNISH REFERANCE:

DETAILED EXPLANATION ON IMPORTANT CONFLICT TO WHICH IT IS PARTY CURRENTLY:

SIGNATURE:

DATE: ……/……/……

EXPLANATIONS:

The name of the institution worked, employer or firm or their commercial title shall be written.
It is filled if the participation rate is 5% or more of the capital of firm participated.
All real estates owned, if exists with their encumbrance, shall be written to this part.
Bond, bills, gold, precious stone and metals, etc. shall be written to this part with encumbrances if exists.
The shares of the firms determined in “Firms being a Shareholder” section shall be excluded.

(5) If the loan more than one type, from the same bank, is used, it must be presented separately.

(6)In case of working with more than one branch of the same bank, it must be presented separately.

(7) Institutions operating pursuant to Capital markets Law and insurance leasing, factoring firms, authorized business, banks etc. shall be written.

Insurance costs of assets assured shall be stated.

NOTE: Annex form can be used in case of parts reserved in form shall not be enough.

Annex-3

LETTER OF COMMITMENT

TO BANKING REGULATION AND SUPERVISION AGENCY

I commit and declare that I do not have a share more than 10% or more, directly or indirectly previous to the take over in banks taken over to Saving Deposit and Insurance Fund and institutions operating in money and capital markets, banks subject to liquidation , bankers, insurance companies.

Annex-4

LETTER OF COMMITMENT

TO BANKING REGULATION AND SUPERVISION AGENCY

……………. We declare that establishment capital/purchase cost, determined in our having license to operate /take-over the shares demand to…………………Institution, are emanated from our activities in commerce and services sector and we contract to provide and deliver them in cash free from all collusion

[1] Article 17(3e) and 17(5h), last sentence of second paragraph of Article 18 and Article 28/A enters into force on the publication of the Regulation on Making Amendments to the Regulation on Bank Cards and Credit Cards published in the Official Gazette dated December 17, 2010 Nr. 27788 and Article 22(6) enters into force after 6 months following the publication of the same Regulation published in the Official Gazette dated December 17, 2010 Nr. 27788.