The amendments to the Law No. 6361 on Financial Leasing, Factoring and Financing Companies ("Law No. 6361") entered into force by publication in the Official Gazette No. 31416 on March 7, 2021 with Law no. 7292. While the name of the Law numbered 6361 is changed to read "Financial Leasing, Factoring, Financing and Saving Finance Companies Law", the scope of activities designated to Association of Financial Leasing, Factoring, Financing Companies is further regulated.
In addition to the above, with the new amendment the companies covered by the law is enabled to be established as a single partner. As of 7 March 2021, Saving Finance Companies should a minimum paid up capital of 100,000,000- Turkish Liras. For companies other than savings finance companies the required minimum paid up capital is now 50,000,000- Turkish Liras.
The title of Article 40 titled "Association of Financial Leasing, Factoring and Financing Companies" was changed to "Association of Financial Institutions" and with the supplement made to the Provisional Article 3 of the Law, Asset Management Companies are obliged to become a member of the Association.
Association of Financial Institutions with their Circular on Rules and Procedures regarding Registration of Financial Leasing Agreements to the Special Registry, covers such matters as electronically keeping the registry records, fulfillment of registration obligation, notification by the lessor, of the contracts that were annotated at the title registry and recorded to its specific registry, rules and procedures on demands of queries on title registry and on inspection of registry records. The lessor is responsible for ensuring that the Contract that was under registration request is the actual contract signed between the lessee and lessor. The Association is responsible for the damages that may arise due to registered items that are required to be registered as per Article 6. The Association shall revoke those who caused damage by their faults.
Registry records will be open to everybody. Those who want to make queries on the registry records for Domestic Financial Leasing Transactions may do so on the Financial Lease Contract Registration Query Screen provided on www.fkb.org.tr.
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