Leasing, Factoring and Financing Companies Law is published in the Official Gazette dated 13th December 2012 issue 28496 and entered into force.

New Products Introduced to the Leasing Sector with the New Law:

1. Operating Lease

The key feature of operating lease is that the leased equipment is generally not transferred to the lessee at contract expiry and leasing company takes back the equipment in question.

2. Sale and Leaseback

Leasing of the movable and immovable goods subject to amortization and registered in the assets of the company by means of leasing for an agreed maturity after being sold to the Leasing Company and repurchasing the same at contract expiry.

3. Duplicated Copies of Computer Software

Excluding patent and intellectual rights; custom software, software applications and hardware applications used by companies can be financed by leasing.

4. Goods preserving original characteristics regardless of supplementary part or component nature

Now, it is possible to lease all kinds of equipment preserving original characteristics regardless of supplementary part or component nature. Therefore, particularly ships or aircraft engine, elevator, air-conditioning systems can be the subject of contract.

Essential Operational Facilitations introduced by the New Law:

1. Liberty of Term

According to the new law, the parties are entitled to mutually agree on the term of the contract.

2. Leasing Payment Periods and Delivery Time of Goods

It is possible to commence collecting rental amounts starting from the date of contract even if they are not yet manufactured or delivered to the lessee. Delivery time of goods is limited to 2 years starting from the date of contract unless otherwise is mutually agreed by the parties.

3. Form and Registration of Contract

The requirement of drawing up leasing contracts in notary public offices as statutory forms is now revoked. Drawing up contracts in writing shall be adequate, and the contracts shall be registered by Leasing Companies Association.

Pursuant to Land Registration Law, real estate leasing contract shall be continued to be drawn up notary public offices as statutory forms.

Contracts related to the movables (such as personal cars) with custom registration common to such movables shall be registered and annotated in the registry in which such goods are registered in.

Leasing, Factoring and Financing Companies Law

Leasing, Factoring and Financing Companies Law is published in the Official Gazette dated 13th December 2012 issue 28496 and entered into force.

For Legislation Document Click here.