Can bills of exchange submitted to a bank for collection be seized by serving a garnishment notice on the bank?
The attachment of negotiable instruments is regulated under Article 88 of the Enforcement and Bankruptcy Law (EBL enforcement & bankcruptcy law), entitled “Protective measures concerning seized movables.” The provision stipulates that: “The enforcement office shall take into custody seized monies, banknotes, bearer instruments, bills of exchange, and other negotiable instruments, as well as gold, silver, and other valuables.”
Since placing negotiable instruments under custody is a condition for the validity of the attachment, bills of exchange in which the enforcement debtor is the creditor can only be seized by physically taking possession of the instruments. However, where such a negotiable instrument is not in the debtor’s possession but is instead held by a third party, and that third party does not have the capacity to transfer the instrument, such negotiable instruments are deemed to be movable property of the debtor in the possession of a third party. In this situation, they may be attached by serving a garnishment notice pursuant to Article 89 of the EBL enforcement & bankcruptcy law.
In cases where a bill of exchange has been submitted to a bank by way of a collection endorsement (tahsil cirosu), the bank does not have the authority to transfer the instrument to another party. Therefore, creditors may seize such negotiable instruments by serving a garnishment notice on the bank. In such cases, upon request, the bank is obliged to deliver the relevant negotiable instruments to the enforcement office.
(Court of Cassation, 12th Civil Chamber, 06.02.2017, E.9569, K.1238)
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John Abraham
says Oct 15, 2017 at 11:00account of the system, and expound the actual teachings of the great explorer of the truth,
Alizabeth Anne
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