Arrest Of Ships

TURKEY is amending, renewing and modernizing most of the Turkish Codes in accordance with the Copenhagen criteria and the rules of the European Union. Below you will read the developments under Turkish Law&Practice on the enforceability of Turkish Ship Mortgages outside of Turkey after the entry into force of the New Turkish Code of Commerce on 1 July 2012 , (the New TCC) that prevents potential arguments to be raised by the shipowners: -The Mortgagee of a Turkish ship mortgage may auction a vessel in a judicial sale outside of Turkey, provided that the creditor notifies the Turkish ships registry, the registered owner and the owners of the other receivables and rights at least 30 days prior to the auction by way of a publication in one of the newspapers that is distributed all over Turkey -The Turkish legislator adopted the concepts and articles of the International Convention on Arrest of Ships and International Convention on Maritime Liens and Mortgages;states in line with the said International Conventions that a provisional sequestration / arrest may be requested for certain maritime claims which are listed in New TCC. This list includes and qualifies as a maritime claim, inter alia, a "pledge or mortgage over the ship or any obligation in rem over the ship". -The jurisdiction of the bailiff's office that has power to enforce the mortgage, is the place/forum where the vessel is arrested or where the vessel is registered. It is therefore clear now that it is possible to start legal proceedings not only where the vessel is registered but also where the vessel is located/arrested ("lex situs").The positive development is the acceptance of the application of the law of the lex situs, the law of the place where the property is found at the time of the transaction in question/the judicial sale, being subject to the fulfillment of the specific, certain conditions as codified under the related Articles of the New TCC. -The New TCC grants the creditor the right to pursue a vessel and enforce a Turkish mortgage in a foreign jurisdiction by the application of the local laws in that jurisdiction ("lex fori")

Av.Alev Elif Beller