1- WHAT ARE NEGOTIABLE INSTRUMENTS?
Negotiable instrument is a kind of document whose rights cannot be submitted without document and cannot be handed over to someone else.
2- WHO IS THE DEBTOR OF NEGOTIABLE INSTRUMENT?
2.1- Debtor of negotiable instrument is supposed to pay it in exchange for the delivery of document.
2.2- Debtor can clear debts by making payment to supplier in accordance with nature of the document when it is due (as long as there is no deception or gross fault).
3- TRANSER OF NEGOTIABLE INSTRUMENTS IN GENERAL
3.1- It is required to transfer the possession in the document in order to transfer negotiable instrument with the intention of gaining a possession or a limited real right.
3.2- Furthermore, it is needed to have an endorsement for order instrument and a transfer statement for registered certificate. This statement can be written on either a negotiable instrument or a separate paper.
3.3- It can be requested with law or agreement that others especially debtor should participate in transfer.
4- CAN A NEGOTIABLE INSTRUMENT BE ENDORSED?
4.1- In all cases, it can be endorsed in line with provisions related to policy’s endorsement.
4.2- It is enough to make endorsement and transfer the possession of document.
5- HOW TO ENDORSE NEGOTIABLE INSTRUMENT?
Endorser’s rights are transferred to the endorsee with the endorsement and transfer of possession, not otherwise specified in content or nature of all transferable negotiable instruments, documents.
6- IS IT POSSIBLE TO CHANGE TYPE OF DOCUMENTS?
In order to change type of documents;
6.1- Registered document or order instrument can be turned into bearer securities with the consent of all persons having rights and debt burden. This consentment should be directly written on document.
6.2- The same rule is valid in the matter of turning bearer securities into registered documents or order instrument. If one of debtor or a rightholder does not give consent for the last case, this change inure between supplier who make this change and the person being the successor to his/her rights.
7- CAN A NEGOTIABLE INSTRUMENT BE DECERTIFIED?
7.1- A court has a right to decide that a negotiable instrument can be decertified on condition that it is lost.
7.2- If a negotiable instrument is lost or when it is revealed that it is lost, the person who has a claim on the document can decide to decertify it.
8- WHAT ARE THE PROVISIONS TO DECERTIFY NEGOTIABLE INSTRUMENT?
8.1- In the event of decertification, rightholder can assert his/her claim without document or can demand to prepare a new document.
8.2- Apart from that, special provisions are applied to various kinds of negotiable instruments.
***Special provisions related to various kinds of special instruments are reserved.
Source: Turkish Commercial Code
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