Yes, the following securities can be taken over the above-mentioned types of assets as noted herein below.
i. Real property (land)- Mortgage can be created over real property (land) in favour of the foreign lender by (a) entry into of an official form mortgage agreement (mortgage deed) before a Land Registry Office; and (b) registration of the mortgage with the land register.
Plant and machinery- If mortgage is created over the real property (land) on which the plant and machinery is located, normally such mortgage also extends to and covers the plant and machinery. Having details of such plant and machinery annotated in the land registry records of the mortgaged real property (land) at the time of the creation of the mortgage will ensure clarity as to the assets falling within the scope of that mortgage. If no mortgage is created as above, and depending on the physical conditions of the plant and machinery in question, commercial movable assets pledge would be created over the plant and machinery in favour of the foreign lender as described herein below.
ii. Equipment– Either commercial movable assets pledge or possessory pledge can be created over equipment in favour of the foreign lender. Commercial movable assets pledge can be created by (a) entry into of a commercial movable assets pledge agreement before a notary in Turkey; and (b) registration of the pledge with the pledged moveable assets register maintained by notaries. Possessory pledge can be created by (a) entry into of a chattel pledge agreement; and (b) transferring the possession and control of the equipment to the foreign lender or to a third party acting for the foreign lender.
iii. Inventory– Either possessory pledge or commercial movable assets pledge can be created over Inventory in the same way as described in limb (ii) above.
iv. Receivables– Either (a) receivables can be assigned and transferred to the foreign lender as security, by entry into of an assignment of receivables agreement; or (b) a pledge can be created over receivables in favour of the foreign lender, by entry into of a receivables pledge agreement. Notifying the debtors of the assignment, or the pledge, is generally advisable.
v. Shares in companies incorporated in Turkey– Pledge can be created over shares in a joint stock company by (a) entry into of a share pledge agreement; (b) delivery of share certificates representing the pledged shares to the foreign lender; and (c) registration of the pledge in the share book of the company. For pledge of shares in a limited company, execution of the share pledge agreement before a Turkish notary is required. For pledge of shares in a public company, which are held by CRA, the central securities depository of Turkey, in electronic (book-entry) form, a Turkish brokerage house’s recording the pledged shares into the relevant pledge sub-account at CRA is required.
Security over assets located in Turkey must be governed by Turkish law.