July 20, 2019
General Information About the Concept of Interest and Its Types
The concept of interest refers to the consideration paid in proportion to the duration of deprivation, due to a quantity of money being deprived. Interest is a secondary receivable, and although there are some exceptions, its fate depends on the actual pecuniary claim; born, accrues and ends with it. In determining the interest rate, some limitations have been introduced in the positive law, which are prescribed differently in ordinary and commercial affairs. These may be classified and be subject to separate limitations and determinations according to whether the interest is requested on the principal interest or default interest or whether it is contractually determined between the parties. The limitations imposed on the determination of interest in legal business and transactions are regulated in the Turkish Code of Obligations and the Turkish Commercial Code, as well as the Law no. 3095 on Legal and Default Interest.
In the legislation on interest rates, in accordance with the general rule, merchants and non-merchants were treated differently and trading parties were given a wider freedom in determining the interest rate. These circumstances are stated in the 8th article of the Turkish Commercial Code. In ordinary works, in addition to the general limitations imposed on the liberty of contract (see. Art. 2 of the Turkish Civil Code; Art. 26, 27, 28, 30 of Turkish Code of Obligations), the realm of freedom has been lessened with the intention of preventing the exploitation of the parties. Thus, these limitations in the legislation are significant in determination of the interest rate specified by the parties as a result of the claim, determining the interest rate as a performance related to the actual receivables in writing the contracts, or evaluating the interest rate expressed in the court decision.
In-Office and Attorneyship-Client Training Presentation
Considering the fact that the interest receivables may even exceed the principle claim and the variability of the limitations in the legislation regarding the rates, it is considerably necessary to refresh the information in this area. As Uçar Law & Consultancy Office, we have made a presentation and shared information about this subject, in order to keep our information concerning the concept of interest and its types up-to-date.
Within the scope of routine in-office and attorney-client training presentations conducted in our law office, a comprehensive presentation on the concept of interest was made. You can access the in-office training presentation prepared and presented by Sıla ÖZ, a senior student at Bilkent University Faculty of Law and our Summer Intern for the period of July 2019, via the file that you can download from the link below.
Detailed information about the The Concept of Interest and Its Types and the presentation documents can be accessed from the link below*:
You can contact us for further information and to take advantage of our advocacy and consulting services. You can find detailed information about our office’s work on Banking and Finance Law, Bankruptcy and Enforcement Law and Corporate Law on our website.
Uçar Law & Consultancy Office
* Subject document is only available in Turkish language. Please contact us for English consultancy services.