CHAPTER 7OTHER SECURITIESOTHER SECURITIES

OTHER SECURITIES

COMMERCIAL PAPERS BANKERS’ NOTES AND BANK

GUARANTEED NOTES ASSET-BACKED SECURITIES REAL ESTATE CERTIFICATES OVERSEAS CERTIFICATES REVENUE SHARING CERTIFICATES

COMMERCIAL PAPERS

S-T, M.M INSTRUMENTS. IN U.S IT IS A DISCOUNT INST. LIKE AS THE TREASURY

BILLS. IN U.S. THE COM. PAPER RATE IS MORE THAN THAT ON

T-BILLS– INVESTOR OF THE COM. PAPER IS EXPOSED TO

CREDIT RISK.– INT. EARNED FROM T-BILLS IS EXEMPT FROM TAXES.– THE LIQUIDITY OF COM. PAPER IS LESS THAN T-

BILLS.

COM. PAPERS cont.

IN TURKEY;– COM PAPERS IS FIRST ISSUED IN EARLY

1980s.– TO THE BEARER OR TO THE NAME UNDER

THE CMB REGISTRATION.– MATURITY 60-720 DAYS.– ZERO COUPON SECURITIES.– THEY CAN BE SOLD WITH OR WITHOUT

PUBLIC OFFERING.

COM. PAPERS cont.

TYPES OF COM. PAPERS IN TURKEY:– A TYPE; NO GUARANTEE, ONLY ISSUER’S

SIGNITURE.– B TYPE; RELATED WITH BUT NOT GUARANTEED

BY A BANK LOAN.– C TYPE; GUARANTEED BY A BANK.– E TYPE; GUARANTEED BY THE TURKISH

TREASURY. – F TYPE; GUARANTEED BY ANOTHER COMPANY.

BANKERS’ NOTES AND BANK GUARANTEED NOTES

BANKERS’ NOTES: ISSUED BY INV.AND DEVELOPMENT BANKS.

BANK GUARANTEED NOTES: ISSUED BY INV.AND DEVELOPMENT BANKS. – BASED ON ALREADY DISCOUNTED

PROMISORY NOTES OF CREDIT CUSTOMERS AND ISSUED UNDER THE BANKS’ GUARANTEES.

ASSET-BACKED SECURITIES

SECURITIZATION: CONVERTING ASSETS INTO MARKETABLE SEC.

IN TURKEY, THEY CAN BE ISSUED BY:– GENERAL FINANCE CORP.– BANKS– FINANCING CORP.– LEASING CORP.

ASSET-BACKED SEC. cont.

THESE ENTITIES CAN ISSUE THEM IN CONJUNCTION WITH THEIR COMMERCIAL RECEIVABLES:– CONSUMER CREDITS OF COMMERCIAL

BANKS– HOUSING LOANS OF COMMERCIAL BANKS– LEASING RECEIVABLES OF LEASING CORP.

ASSET-BACKED SEC. cont.

– EXPORT LOANS OF BANKS, LEASING CORP., AND FACTORING CORP.

– ORHER RECEIVABLES: PROMISORY NOTES CREATED BY INSTALLMENT SALES OF PRIVATE AND PUBLIC SECTOR ENTITIES.

– NOTES RECEIVABLES OF T.C. ZIRAAT BANK OWING TO LENDING TO AGRICULTURAL CREDIT COOPERATIVE

– SPECIAL LOANS GRANTED BY HALK BANK

ASSET-BACKED SEC. cont

COMMERCIAL RECEIVABLES ARE MADE UP OF;– DRAFTS, BILLS OF EXCHANGE (POLİÇE)– PROMISORY NOTES (BONO)– CHECKS

ASSET-BACKED SEC. cont.

ASSET-BACKED SEC. ARE TRADED AT SECONDARY MARKETS.

CMB DEMANDS BANK GUARANTEES FROM THE ISSUERS OF THEM OTHER THAN BANKS.

THEY CANNOT BE – GIVEN AS COLLATERAL,(TEMİNAT OLARAK

GÖSTERİLEMEZ)– MORTGAGED (REHNEDİLEMEZ)– SEQUESTERED (HACZEDİLEMEZ)

REAL ESTATE CERTIFICATES (Gayri Menkul Sertifikaları)

THEY HAVE GOT TO BE;– REGISTERED BY THE CMB– LISTED WITH A SECURITIES EXCHANGE

THEY ARE ISSUED INCONJUNCTION WITH A CONSTRUCTION PROJECT.

REAL ESTATE CER. cont.

TO BE ELIGIBLE TO MAKE AN APPLICATION TO THE CMB FOR REGISTRATION OF REAL ESTATE CER., THE ISSUER MUST;– HAVE COMPLETED A SIMILAR SIZE AND

QUALITY PROJECT WITHIN 5 YEARS– BE EQUIPPED WITH PROFESSIONAL AND

TECHNICAL WHEREWITHAL.

REAL ESTATE CER. cont.

COMMITMENTS OF THE ORIGINATOR;– PRIMARY; TO PASS THE TITLE DEEDS TO

THE HOLDER WITHIN THE PERIOD SPECIFIED.

REAL ESTATE CER. cont.

– SECONDARY: IN CASE THE HOLDER DOES NOT DEMAND THAT THE PRIMARY COMMITMENT BE FULFILLED

PRINCIPLE AND INTEREST IS PAID AND, REAL ESTATE IN QUESTION (DO NOT DEMAND BY

HOLDERS) IS PUT TO AN AUCTION, AND THE PROCEEDS OF IT DISTRIBUTED AMONG THE CERTIFICATE HOLDERS.

REVENUE SHARING CERTIFICATES (Gelir Ortaklığı Senetleri)

THEY ARE UNIQUE FOR TURKEY. SOME ECONOMICS LIKE THEM TO

“INCOME BONDS” AND OTHERS TO “TREASURY BONDS”.

THEY ARE PUBLIC PAPERS LINKED TO CERTAIN REVENUE CREATING PUBLIC WORKS SUCH AS BRIDGE AND BARRAGE.

REVENUE SHARING CER. cont.

DO NOT SUPPLY THE HOLDER WITH PARTNERSHIP, NOR RIGHT TO SHARE THE DISSOLUTION ; ZERO-RISK,

THEY ARE COUPON PAPERS, INTEREST PAYMENTS ARE MADE TWICE

A YEAR, THE INTERMEDIARY BANKS ARE

SECONDARY MARKETS FOR THEM.

REVENUE SHARING CER. cont.

THEY CAN BE EASLY CONVERTED INTO CASH.

3-5 YEARS. THEY ARE TANGIBLE. CAN BE GIVEN AS COLLATERAL.