Foreign creditors holding cheques, promissory notes or bills of exchange issued in connection with Turkish business transactions have access to a powerful collection tool under Turkish law: special execution proceedings on negotiable instruments (kambiyo senetlerine özgü icra takibi). This is a fast-track, document-driven enforcement mechanism regulated mainly by the Turkish Enforcement and Bankruptcy Law and by the negotiable instruments provisions of the Turkish Commercial Code. It is designed to help creditors reach the debtor’s assets more quickly and with narrower objection grounds than in ordinary enforcement.
- Which Instruments Qualify?
Only certain instruments qualify as a “kambiyo senedi” under Turkish law:
– Cheque (çek)
– Promissory note (bono)
– Bill of exchange (poliçe)
These instruments must strictly satisfy the formal requirements set out in the Commercial Code, such as an unconditional promise or order to pay, the amount, maturity date, place of payment, name of the payee and the signature of the issuer or drawer. If the document lacks any essential element, it cannot be used in this special track and the creditor must resort to ordinary enforcement or a standard civil lawsuit. In addition, the debt must be due and payable: the maturity date must have arrived when the creditor applies to the enforcement office.
- Why Choose the Special Track?
A foreign creditor is not obliged to use the special track even if it holds a negotiable instrument; ordinary enforcement proceedings are still available. However, the kambiyo route offers important advantages:
– Faster procedure from payment order to attachment
– Limited and formalised objection grounds for the debtor
– Strong evidentiary value of the negotiable instrument itself
– In many cases, the ability to proceed directly against the debtor’s assets without first exhausting any pledged or secured property
For foreign creditors, these features often translate into quicker and more predictable recovery, especially in commercial disputes where cash-flow and speed are critical.
- Jurisdiction and Where to File
The creditor, usually through a Turkish attorney, files an enforcement request with a competent Turkish enforcement office (İcra Dairesi). Jurisdiction is typically determined by:
– The debtor’s domicile or registered office in Turkey, or
– The place of payment indicated on the instrument, if applicable.
Because negotiable instrument debts are generally considered “to be claimed” where the debtor is located, the creditor usually cannot simply choose its own domicile as the place of enforcement unless jurisdiction rules allow it. In practice, creditors normally file where the debtor or the main assets are located.
- Initiating the Special Execution
The enforcement request must contain the usual elements (names and addresses of the parties, amount claimed, interest and costs) plus data specific to negotiable instruments:
– Type of instrument (cheque, promissory note or bill of exchange)
– Date and number of the instrument
– Maturity date and amount
The creditor must attach the original negotiable instrument and sufficient copies for each debtor. In electronic applications, a scanned copy may be uploaded, but the original must be delivered to the enforcement office within a short statutory period; otherwise the proceeding can be terminated.
The enforcement officer will check ex officio whether the document is indeed a negotiable instrument and whether the debt is due. If these conditions are not met, the officer should reject the request.
- The Payment Order and Debtor’s Objections
If the request is accepted, the enforcement office issues a special payment order for negotiable instruments and serves it on the debtor together with a copy of the instrument. The order invites the debtor to pay within a short period (in practice, five days) or to raise objections within the same period.
In these special proceedings, the debtor’s objections are limited and formal. Typical grounds include:
– The signature on the instrument is not the debtor’s
– The debt has been paid, deferred or is time-barred
– The debtor is not the person liable under the instrument
– The enforcement office lacks jurisdiction
Because the number of admissible objections is narrow and the negotiable instrument carries strong evidentiary weight, the legal framework structurally favours a creditor who holds a properly issued cheque, promissory note or bill of exchange.
- If There Is No Objection or Payment
If the debtor does not object within the legal time limit and does not pay, the payment order becomes final. The foreign creditor may then request attachment (haciz) of the debtor’s assets in Turkey, such as bank accounts, movable property, real estate (with registration of seizure in the land registry) and shares in Turkish companies. From this point forward, the procedure largely resembles ordinary seizure-based enforcement: attachment, valuation, auction sale and distribution of proceeds.
- If the Debtor Objects
If the debtor files a timely objection, enforcement does not simply end. Instead, the creditor can:
– Apply to the Enforcement Court for removal of the objection, relying on the strong evidentiary nature of the negotiable instrument, or
– File a civil action for annulment of the objection before the competent court.
Strict deadlines apply to these remedies, so foreign creditors should coordinate closely with their Turkish counsel to avoid loss of rights.
- Practical Tips for Foreign Creditors
Foreign creditors intending to use this special route should:
– Make sure the instrument fully complies with Turkish formal requirements
– Check limitation and presentment periods for cheques and other instruments
– Retain a Turkish attorney experienced in enforcement and negotiable instruments
– Keep the original instruments safe and immediately available for submission
Used correctly, kambiyo-based execution offers an efficient and creditor-friendly path to recover debts from debtors or assets located in Turkey.
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