The maximum amount hypothec and practice in Turkish law

In order for creditor to acquire his/her receivable, there are real and personal guarantees to guarantee this right. Personal guarantees cannot provide a complete protection for debtor to acquire his/her receivable. On the other hand, real guarantees pave the way for a complete protection, considering today's economic circumstances, and therefore provides debtor to heave a sigh of relief. Real guarantee with the most fields of implementation today, is hypothec. Hypothec is a type of immovable pledge and it is a real right that gives the debtor the right to collect his/her receivables from sale value of the immovable, due to failure to render the payment of receivables on time, upon sale of the immovable via executive organs, which is provided as guarantee for receivables. Hypothec might be established when the receivable is certain or it may be established when the receivable is not certain, as well. Within this scope, in case the receivable is certain, hypothec type is the principal hypothec; in case the receivable is not certain hypothec type is maximum amount hypothec. Maximum amount hypothec posing a paramount importance in terms of guaranteeing the receivables that are not certain during establishment of hypothec of that might change afterwards, is a real right that is frequently practiced to guarantee debts stemming from credit transactions under today's economic circumstances. Within this scope, maximum amount hypothec is evaluated in terms of principles regarding the immovable pledge, its establishment and scope are explained and its differences from principal hypothec, which is a similar concept too, are discoursed in this study. In conclusion, points with regards to termination of hypothec, regulated in TMK (Turkish Civil Code) and İİK (Bankruptcy and Enforcement Law) legislations, are elucidated by taking properties of maximum amount hypothec into consideration.