TÜRKIYE Law and Practice Contributed by: Türker Yıldırım, Semih Sander, Gülistan Baltacı Hatay and Selçuk Sencer Esenyel, Esenyel|Partners Lawyers & Consultants
1.4 Requirements for Ownership of Vessels There are different types of ship registries in Türkiye, each with different registration requirements. Registration with the Turkish (National) Ship Registry is only allowed if the ship-owner is either a Turkish citizen or a Turkish legal entity where the majority of the board of directors, shares and voting rights are held by Turkish citizens. On the other hand, registration with the Turkish Inter - national Ship Registry (TISR) is possible if the ship- owner resides in Türkiye, irrespective of nationality. For legal entitles, such ship-owner must still be a Turk - ish legal entity; however, assignment of the majority of the board of directors, shares and voting rights shall only be sought if the vessel is to hoist the Turkish flag. However, there is an exception under Article 941 (2) of the TCC in that foreign vessels shall be allowed to fly the Turkish flag if bareboat-chartered to a Turk - ish legal entity where, again, the majority of board of directors, shares and voting rights are held by Turk - ish citizens. Further, the Master and 51% of the crew must be Turkish citizens. A special registry exists for vessels under construc - tion, and it is possible for builders and buyers to have vessels under construction registered with such spe - cial registry. 1.5 Temporary Registration of Vessels Neither temporary nor dual registration of vessels is permitted in Türkiye. However, there is an exception for financial leasing and bareboat charter. Financially leased foreign-flagged vessels can be registered with the TISR subject to certain conditions, whereas bare - boat-chartered foreign vessels can be registered with
• for real persons, ID document, power of attorney and proof of address; and • for legal entities, signature circular, good standing certificate, power of attorney and an ID document of the representative. 1.7 Ship Ownership and Mortgages Registry As per Article 973 of the TCC, the Turkish ship registry is public, and registry records may be reviewed by any person. However, in practice, the registry requires such persons to state their interest in reviewing the records. In any case, pursuant to Article 973 (2), one must prove one’s legitimate interest to review the detailed registry files. 2. Ship Finance and Leasing 2.1 Ship Loan Finance Key terms generally include: • default provisions; • loan amount; • form of loan extension; • interest terms; • payment terms; • lender’s and debtor’s rights and obligations; • securities; and • terms of repayment. In addition, key terms increasingly include sanctions clauses due to the ongoing conflicts and enhanced know-your-customer (KYC) diligence by the lenders. Debt financing is the most common ship finance type in Türkiye. Typical transactions involve an owner mort - gaging one or more of their existing vessels to finance the purchase of another. Other than mortgages, lenders usually require assign - ment of receivables, earnings or insurances, and per - sonal and corporate guarantees. Undertakings by managers are also not uncommon. 2.2 Ship Leasing Ship-Leasing Transactions While leasing transactions are increasing in other trade areas (such as aviation), ship leasing is still not a
a special registry kept by the Ministry. 1.6 Registration of Mortgages
Ship registries maintain the registration of mortgages. The following documents, in original, are required for registration of a mortgage: • ship mortgage registration application;
• notarised mortgage agreement; • payment of registration fees;
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