Banking & Finance Law
We continuously represent some of the biggest banks and financial institutions in North Cyprus, such as Creditwest Bank, İktisat Bank, Vakıflar Bank, Lefka Cooperative and Ortakoy Cooperative.
We have extensive experience in banking and finance law and litigation. Some of our law firm members has also overseas experience in shipping finance law.
Our banking and finance lawyers will be able to advise you with their expertise and provide you with optimum solutions for your financial issues or conflict.
Loan
Signing a loan with a bank seems easy. However terms of the contract must be read and duly considered.
In most cases the banks will not negotiate their standard loan agreements with their customers. However it may be important to at least understand the difference between loan agreements of different banks that are on offer.
Interest Rate
One thing that is important to check is whether the interest rate of the loan fluctuates in time.
Some bank loan agreements state the fixed interest rate until the end of the loan term, where as some other banks state that the interest rate can be changed by the bank any time in the future without notice. This is especially important to check at the point of signing of the agreement as Turkish Lira interest rates can be volatile.
With fluctuating interest rate loans, the customer can experience higher installments or longer loan terms if these rates fluctuate.
Mortgage
Banks may ask for a mortgage on an immovable property or lien on a movable property of the customer, especially in the loans with higher amounts.
If should be noted that if the bank did not take a mortgage, it can still try to have the properties of the debtors’ sold by court procedure, if the debtors are in default of the loan agreement.
An exception to this is one house that is reasonably necessary for the debtors to live in, where the bank cannot have it sold. however if the house is mortgaged, this exception does not apply.
Memorandum & Charges
Memorandum is a charge or an impediment on an immovable property. Memorandum can be put by someone who is owed money on the debtor’s immovable property.
Memorandum can only be put after obtaining a court judgment, that confirms the debt.
Compulsory Sale
A creditor, like a bank, can ask for the property of the debtor to be sold at auction. This can be done by a court decision, mortgage procedure or memorandum procedure.
In certain cases the owner of the property or the debtor can apply to the court to stop the sale by injunction application.
We can assist you by our experienced legal team in this area.
Contact Us For Free Consultation
E-mail | info@nekibzade.com
Telephone | +90 533 863 7599
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