TÜRKİYE Law and Practice Contributed by: Serkan Gül, Nazım O Kurt and Türkay Avanaş, Hergüner Bilgen Üçer Attorney Partnership
ing of pollution. The applicable law requires that – where environmental pollution is a possibility – the parties must take the necessary measures in order to prevent pollution, and, if pollution occurs, they must take the required actions in order to stop the pollution or decrease the effects of the pollution. The same law explicitly states that polluters have strict liability with respect to environmental pollution. Therefore, lenders hold - ing or enforcing security over real estate should not be liable under environmental laws, as any pollution to the real estate is regarded as being caused by the borrower. 3.9 Effects of a Borrower Becoming Insolvent In principle, securities established in favour of a lender do not become void by a borrower’s insolvency. However, securities guarantee the creditors’ position in such cases. Declaration of Bankruptcy In the event of a borrower’s insolvency, credi - tors can ask a court to declare the bankruptcy of the borrower. Bankruptcy results in the total liquidation of a bankrupt entity’s assets and the satisfaction, pro rata, of its creditors. An impor - tant exception to this rule is mortgagees as their receivables are guaranteed by specific security, so the bankruptcy rules require that they be repaid first, in full, before other unsecured credi - tors. Composition of Debts On the other hand, when borrowers become insolvent, they can seek bankruptcy protection in the form of composition of debts. Under this device, debtors reach an agreement with their creditors regarding the extent of the deduction to be made in outstanding debts and the defer - ment of payments. Mortgagees are given excep - tional rights under the composition of debts
mechanism as well. Even under the composition regime, mortgagees may initiate proceedings for the sale of mortgaged assets to have their debts repaid but may not realise the eventual sale of the secured asset while the protection is in place. Another device of bankruptcy protection that used to be available but is no longer permit - ted was the deferral of bankruptcy, which was imposed by a court upon the application of the debtor. The shift to a composition regime from a deferral of bankruptcy regime is a positive devel - opment in that it promotes agreement between debtors and creditors rather than a court impos - ing a solution in its own judgment. 3.10 Taxes on Loans No material provided for this jurisdiction. 4. Planning and Zoning 4.1 Legislative and Governmental Controls Applicable to Strategic Planning and Zoning Zoning plans must comply with the applicable legislation, and, more specifically, with planning principles, urbanisation principles and public interest, such as regional requirements, trans - portation opportunities, etc. This implies legisla - tive control over zoning plans. Moreover, smaller-scale zoning plans must com - ply with larger-scale zoning plans (hierarchy of zoning plans). Ministries enact larger-scale zon - ing plans (spatial strategic plans, environmental plans) whereas local municipalities enact small - er-scale zoning plans (implementation zoning plans). This implies the central administration’s control over the local authority.
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