Assignment of claim in lieu of payment: IIK m. 120

Although it is applied rarely in Turkish Law, assignment of claim in lieu of payment involves substantial rules concerning the realization of the claims of debtor. There are two different types of realization, namely; assignment of claim in lieu of payment and assignment of claim for collection within the scope of assignment of claim in lieu of payment.For both kinds of realization it is required that there is no stock or market price of the claim, which is seized. In addition to that, all creditors who seize the relevant claim must agree on the kind of realization.Assignment of claim in lieu of payment corresponds to the performance in lieu of payment in the frame law of obligations. Therefore, by the assignment of claim in lieu of payment, enforcement proceeding is completed in proportion of the claim assigned. Creditors entitle the claim of the debtor in respect of the sequence of payments to be paid to each of them. In other words, the claim is transferred to the property of creditors from the property of debtor.Assignment of claim for collection is not an actual transfer of rights, but only an assignment. Rather the competence to sue and prosecute the claim against third parties is assigned to the creditors. Then, creditors collect the concerning claim in the name of the debtor by being assigned his competence to prosecute. The amount that is collected by this way is first allocated to the expenses and credits of the creditors who conduct the process.