The Necessary Elements for Issuing a Valid Bond

A debt note that is a negotiable instrument that depends on certain form conditions and includes a commitment to pay some money is called a bond. There are mandatory and discretionary validity conditions that must be observed when preparing a bond.

Mandatory Form Requirements

If the conditions of the said mandatory form is not conformed to, the bond loses its valuable document quality. As a result, the tracking facilities granted to foreign exchange documents cannot be used.

“Bond” or “bill to order” must have been mentioned on the promissory note.

There must be a promise to pay a certain amount of money unconditionally.

Indeed, if the payment promise is made according to a specific condition, condition or given as a guarantee by the contract concluded between the parties, the exchange document will lose its decency. Currently, it should be taken into account that collateral securities taken as collateral in banks have lost their bond quality and cannot be put into enforcement proceedings through bond monitoring.

A promissory note issued as a deposit to be given during eviction when arranging rental agreements will also not be a bond again.

If there is a difference between the price written in the deed and the number, the one written in writing will apply.

If the price has never been written in the promissory note, the promissory note will not be valid.

To whom or whose order it will be paid, their name, surname, and degree must be indicated.

The person to be paid for the order must be an accurate or legal person. Notes written using only trade names will not be valid again. Abc drapery- it’s like Burcu jewelry…

The signature of the discoverer is required.

It is necessary that the person who is issuing the bond signs the bond in his handwriting.

There should be a date for editing/drawing.

The Supreme Court of Cassation has started to make decisions on the date of regulation has not been proven to have been set after the promissory note was put into circulation, and it is not true that there is no date of the rule by betting because it has not been seen in the photocopy. In this case, while it becomes difficult to prove to the discoverer that his drawing date was filled out later, the elements of proof continue to be against the debtor.

The date can be written in writing or in numbers.

The stated date should not be impossible such as April February 28th, April 30th

Alternative Mandatory Form Requirements

If these conditions are not shown separately in the bond, another record contained in the bond replaces this condition. However, if this record is not in the promissory note, the promissory note does not have the quality of a bond.

The place of arrangement should be indicated.

It is sufficient that the place of arrangement indicates an administrative unit such as a city or district parish, and there is no need for another long address. Kartal, Pendik, and Kavacık are organizational units that can be shown as a place of arrangement.

The place of payment must be indicated.

The place of payment must be clearly indicated on the bond; again, it will be enough to write down the administrative unit.

 

1. Terms of Discretionary Validity

 

Deferral Condition and Maturity Registration

 If there is no maturity record in the bond, It is accepted that it is arranged to be paid “when it is seen.” It is necessary to submit such a bond to the discoverer within one year from the date of its issue. However, if the holder does not offer this bond to pay the drawer within this period, he will lose the right to apply to other persons who have signed the bond other than the discoverer.

The Supreme Court’s decision is that the absence of maturity in the bond will not prevent a follow-up depending on the bond.

However, the date and editing may be the same in the deed; the maturity date cannot be before the editing date.

A date cannot be specified by typing only the day and month without specifying the year.

 

Price registration

There must be a record of receipt of the price in property or cash.

 

Authorization registration

In case of a dispute, it is a contract to determine an authorized court or executive directorate. It is not mandatory, but it is binding.

 

Interest registration

The interest record may be valid on bonds payable after a-is seen and b- after it is seen. If the beginning of interest is not shown on the bond, the interest starts from the date the bond is issued and continues until maturity. If the bond is not paid at maturity, the interest on the delay is calculated over them, yet the interest that will be processed by the maturity date is the principal amount, that is, the capital interest. But this is rarely seen in practice.

Registration of expenses and power of attorney fees

The name of the drawer

Although the drawer’s signature is sufficient on the bond, writing a name and surname is recommended for convenience in practice.

Registration of turnover

Referee registration

Registration of Exemption from protest

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