GYIAD Law Bulletin: Regulations On The Commercial Life Introduced By The Law Numbered 7226 Amending Certain Laws
1. Regulations on the Debts to Banks and Credit Agencies
By the Omnibus Bill, a number of temporary regulations has been introduced within the scope of Law no. 5834 on Exclusion of the Records Regarding Bad Checks, Protested Bills and Loans and Credit Card Debts.
According to the regulation introduced by the Omnibus Bill, it has been declared for:
- Real and legal persons having default in the payments regarding the capital, interest and/or its ancillaries of the cash or non-cash credits whose payment dates in terms of the capital or installment are before the date of 24 March 2020,
- Real persons engaged or not engaged in commercial activity, and
- Credit card customers
that, in case the whole of the delayed parts of their payments are paid or restructured until the date of 31 December 2020, records of these persons kept with the Risk Center of the Banks Association of Turkey founded as per the Law of Banking no. 5411 regarding bad check, protested bill and credit and credit card debts will not be taken into consideration by the credit agencies and financial institutions in terms of the financial operations performed by them.
Additionally, it has been regulated that the restructuring of existing loans or new lendings made by the credit agencies and financial institutions under the regulation mentioned above will not impose any legal or criminal liability on such institutions.
- Regulations on Bad Checks
Pursuant to the temporary regulation introduced by the Omnibus Bill regarding the Law of Checks no. 5941, the enforcement of convictions imposed on persons for crimes of causing a non-refundable transaction before 24 March 2020 (to cause a non-refundable transaction by submitting the check to the bank) will be ceased as of 26 March 2020 which is the date of entry into force of this regulation.
Additionally, it was stated that in order for the court to decide to abolish the criminal conviction with all the consequences, the persons convicted in penal institutions for this crime are obliged to pay one tenth (1/10) of the unpaid part of the check amount to the creditor within three (3) months at the date of release, and the remainder in fifteen (15) equal installments, two (2) months apart starting from the end of the three (3) months’ period.
Comparing with the situation before the Omnibus Bill, where the payments of the judicial fines imposed on the “accused ones having been convicted of a crime of imprisonment” were made to the State, the new regulation stipulates to pay one tenth of the payments to the creditor that the measures are taken to protect the interests of both the creditor and the debtor.
It was stated that pursuant to the regulation introduced by the Omnibus Bill, if one tenth of the unpaid part of the check amount is not paid within three (3) months from the date of release, upon the complaint of the creditor, the execution of the sentence shall be resolved by the court. In case that the convicted person does not duly pay any of the installments, such amount will be considered as an additional installment at the end of the installment period. However, if the convicted person does not pay any other installment in that period, upon the complaint of the creditor, continuation of the execution of the sentence will be resolved by the court.
In terms of execution of the sentence, it is stated that if the execution of the sentence is ceased, the limitation period regarding the penalty will not accrue and the judicial control decision shall be resolved on the person whose sentence has been suspended by the competent court of enforcement crimes.
The court decisions to be made by the competent court of enforcement crimes, pursuant to the new regulations introduced by the Omnibus Bill and in accordance with the Execution and Bankruptcy Law No. 2004 ("Law No. 2004"), are appealable. Likewise, the new regulations can only be applied once for each crime.
The Omnibus Bill regarding commercial operations has entered into force as of the publishing date, 26 March 2020.
The Omnibus Bill does not have a readily available English version. However, you may access the Turkish version of the the Omnibus Bill from here.