What is the Difference Between a Promissory Note and a Bill of Exchange? Updated Comparison
In everyday Turkish, the word “senet” can describe any written acknowledgment of debt. Under the Turkish Commercial Code (TCC), however, “bono” (order promissory note) is a negotiable instrument with strict statutory elements. Every bono is a promissory note, but not every note qualifies as a bono. This guide breaks down the legal and practical differences.
What is a Regular Promissory Note?
- A written promise between debtor and creditor governed mainly by the Turkish Code of Obligations.
- May lack the wording “bono/order promissory note” or an explicit unconditional payment promise.
- Enforcement takes place through ordinary execution proceedings, which are slower and require more documentation.
What is a Bono (Order Promissory Note)?
- Must include all elements listed in TCC art. 776: the wording “bono/order promissory note,” unconditional promise to pay, amount (figures & words), issue/maturity dates, place of payment, payee information, and the drawer’s wet signature.
- Counts as a negotiable instrument, so accelerated enforcement (kambiyo proceedings) is possible.
- Can be endorsed or guaranteed (aval), which boosts its value as collateral.
Key Differences Between Regular Notes and Bonos
| Topic | Regular Promissory Note | Bono (Order Promissory Note) |
|---|---|---|
| Legal Basis | Turkish Code of Obligations | TCC art. 776-778 |
| Required Wording | Not mandatory | “Bono / order promissory note” must appear |
| Payment Promise | May include conditions | Must be unconditional |
| Parties | At least debtor & creditor | Drawer (debtor) & payee; others join via endorsement/aval |
| Enforcement | Ordinary execution | Accelerated cambial execution |
| Transferability | Usually non-negotiable | Fully endorsable |
| Collateral Value | Limited | High; widely accepted by lenders |
When Should You Use Each Instrument?
- Choose a bono when you need strong enforcement rights, plan to assign the note via endorsement, or want the document to function as trade finance collateral.
- Choose a regular note when a simple acknowledgment of debt is enough and complying with TCC’s formalities would be unnecessarily burdensome.
Bono Drafting Checklist
- Does the text explicitly include “bono” or “order promissory note”?
- Is there a single sentence with an unconditional promise to pay?
- Do figures and words match the exact same amount?
- Are the issue date, maturity, place of payment, and payee details complete?
- Did the drawer (or authorized representative) provide a wet signature and stamp if required?
Conclusion
The difference between a senet and a bono stems from their legal framework. Bonos fall under the TCC’s negotiable-instrument rules, offering stronger enforcement, endorsement, and collateral capabilities. Senetyaz streamlines TCC-compliant bono drafting with guided fields, automated validations, and download-ready PDFs so you can issue professional notes with confidence.