Failure to pay the promotion on due due

In order to be able to talk about receivables, you must first have a valid bill that has the characteristics of a negotiable instrument. You can find information about the definition of the bill and its validity conditions in our article titled Form Conditions of the Bill.

APPLICATIONS IN CASE OF NON-PAYMENT OF THE BILL

In order for a bill to be paid, the debt must first be due. Payment of a bill whose maturity date has not yet arrived cannot be requested. If the maturity date is not specified in the promissory note, it is regulated that the promissory note will be paid when seen.

According to Article 708 of the Turkish Commercial Code, the holder of the bill must present it to the issuer. You can review our article on the conditions of presentation in our article titled Obligation to Present the Promissory Note.

The holder, who has duly presented the bill, may later resort to the following methods for the unpaid bill:

1-If the holder wishes, he can pursue enforcement proceedings against the principal debtors of the bill (those who draw up the bill and give approval) through a lien specific to bills of exchange, or file a lawsuit for debt.

2-In addition to the principal debtors, the holder can also apply to the application debtors (endorsers or those who give endorsements to the endorsers). There are certain conditions required to apply for endorsers. These conditions will be examined under separate headings below.

OBLIGATORY TO PROTEST IN THE DEED

1-Application to primary debtors:

The principal debtor in the promissory note is the one who draws up the promissory note. In bills issued through a representative, the representative who exceeds his authority becomes liable as the principal debtor. The heirs of the main debtors are considered the main debtors. Apart from these, those who gave an aval to the person who issued the bill will also be responsible as the principal debtor. For a bill that has been duly presented, the holder can directly apply and pursue enforcement proceedings against the principal debtors without protesting. In this case, no protest requirement is required.

2-Application for debtors:

People who sign the bill other than the principal debtor are considered application debtors. Those who give endorsements to the endorsers are also responsible as the application debtor.

If the holder wants to apply to those other than the principal debtors (endorsers and those who give aval on their behalf);

A-The bill must be submitted to the issuer.

B-The principal debtor should not pay the bill.

C-The non-payment situation must be determined by filing a non-payment protest.

If these three conditions are together, the holder will now be able to exercise his right to pursue and sue against the application debtors. If no protest is withdrawn, the application debtors will be released from liability. "The holder's ability to apply to the beneficiary based on a bill that includes the condition of payment on a certain day or after the day of issuance or a certain period of time after sighting, depends on the protest of the bill drawer within two business days following the payment day. The basis of the objection debtor pursuit is the beneficiary endorser of the bill, and in order to pursue the said person, a protest must be made to the drawer. In the pursuit file, the pursuit creditor is the holder of the bill. "It seems that there is no document proving that a protest has been drawn up against the creator. Since the protest condition was not duly fulfilled, it should be decided to cancel the pursuit." Y12. HD.

Enforcement proceedings cannot be carried out without protesting against the endorsers, if so, the proceedings are cancelled. As a matter of fact, in a decision given by the 12th Civil Chamber of the Supreme Court of Appeals in 2017;

"It is seen that the complaining debtor is the beneficiary (first endorser) in the two bills of 200,000 TL and 420,000 TL that are subject to prosecution. In this case, the creditor, who is the authorized holder, is obliged to send a non-payment protest to the drawer of the bill in order to pursue the debtor endorser. Although it is seen that there is no document in the enforcement file indicating that a protest was made in terms of the bonds in question, "It is understood that the creditor holder has lost his right to appeal against the endorser in terms of the promissory notes that are the basis for the proceeding. Therefore, while the court should have decided to cancel the proceeding on the grounds that the creditor has lost the right to appeal, considering this issue ex officio in accordance with the provision of Article 170/a-2 of the EBL, it is inappropriate to make a decision to reject the complaint." He used the expressions.

PROTEST PERIOD ON THE BILL

- For bills with a certain payment date, the protest must be withdrawn within 2 business days following the payment day.

- For bills payable on sight, the protest period is 1 year from the date of issue.

- For bills with no maturity date, a protest for non-payment must be made within 1 year from the date of issuance.

The protest may be filed by the holder himself. In practice, promissory notes are generally given to the bank as a protest.

HOW TO PROTEST AT THE BILLS

Article 715 of the Turkish Commercial Code regulates that the protest must be withdrawn through a notary. The authorized notary is the notary public in the commercial place of the principal debtor or, if there is no such place, in the place where his residence is located. The protest document constitutes a presumption that the submission has been made until the contrary is proven.

FORM AND CONTENT OF THE PROTEST

TTK ARTICLE 716

(1) Protest;

a) Names or trade names of the persons who made the protest and those to whom the protest was drawn,

b) An annotation stating that although the person against whom the protest was lodged was invited to fulfill his commitment arising from the policy, he did not fulfill his commitment, he could not be found or his place of business or residence could not be determined,

c) An annotation of the place and day when the invitation in question was made or the invitation attempt was unsuccessful, and

d) Signature of the notary who organized the protest,

contains.

(2) Partial payment is stated in the protest.

(3) If the addressee to whom a bill of exchange has been presented for acceptance requests the bill to be presented again the next day, this situation is also recorded in the protest.

c) Protest document

ARTICLE 717-

(1) The protest is prepared as a separate document and attached to the policy.

(2) If the protest is prepared by presenting various copies of the same policy or the original and a copy of the policy, it is sufficient to attach the protest to one of these copies or the original bill.

(3) It is recorded in the other copies or copy that the protest is attached to one of the remaining copies or the original of the policy.

EXEMPTION FROM PROTEST

-There is a record regarding exemption on the bill,

-The issuer of the bill is bankrupt,

-Existence of force majeure

In such cases, the holder may exercise his right to apply without protesting.