Quick Guide: Guarantors on Promissory Notes
A “kefil” (guarantor) steps in if the debtor fails to pay. Turkish law recognizes two main structures:
- Ordinary guarantee (kefalet): Governed by the Turkish Code of Obligations; requires a written statement, limit, date, and in some cases spousal consent.
- Aval: A cambial guarantee placed on the face of the note, making the avalist liable just like the principal debtor.
Why Add a Guarantor?
- Provides a secondary payer and enhances collection prospects.
- Helps suppliers extend longer terms safely.
- Complements other collateral (mortgage, pledge, etc.).
Checklist for Guarantors
| Action | Reason |
|---|---|
| Obtain written consent | Mandatory under Art. 583 TCO |
| Specify amount & currency | Limits disputes over liability |
| Include date | Missing dates jeopardize validity |
| Confirm spouse approval (individuals) | Required under Art. 584 TCO |
Aval vs. Ordinary Guarantee
- Ordinary guarantee: Usually on the back of the note; creditor must first pursue the debtor unless waived. |- Aval: On the face of the note with wording such as “aval içindir”; avalist can be sued immediately like the maker.
Takeaway
Adding a guarantor strengthens every promissory note. Senetyaz highlights guarantor/aval fields in your forms and ensures each signature block meets Turkish legal requirements.