The Era of Digital Promissory Notes with E-signatures Begins!

Promissory notes, which serve as documents acknowledging debt, involve two parties: the creditor and the debtor. When creating a promissory note, it is important to specify a due date, and these notes must be paid on the specified date. According to the Turkish Commercial Code, promissory notes are classified into three types: checks, promissory notes (bono), and bills of exchange. Once signed between parties, promissory notes do not require notarization to remain valid. What matters is that the notes are prepared under appropriate conditions according to their nature.

Promissory notes can be collected in two ways: they can either be collected by hand on the due date or via a bank. According to the law, promissory notes must be paid within two business days from their due date. If the payment is not made within this period, legal proceedings can be initiated to collect the unpaid notes.

How to Collect Unprotested Promissory Notes?

What happens if the protest period for a promissory note expires? How can expired promissory notes be collected? Let's explore these details.

Collection Period for Overdue Promissory Notes

Unpaid promissory notes are a matter of concern for many debtors and creditors. Promissory notes are a commonly used payment tool in commercial life. The primary debtor of a promissory note is the person who issues the note. The expiration of the due date does not prevent the collection of the note. If the payment is not made, a non-payment protest must be issued to formally record the non-payment. The protest period for a promissory note is two business days following the due date. For promissory notes payable upon presentation, the protest period is one year from the date of issue. If a promissory note does not have a due date, it must be protested within one year of its issuance.

How Long is a Promissory Note Valid in Enforcement?

Does a promissory note expire, and can it still be enforced after it expires? If a promissory note is not paid within three years from the due date, it becomes subject to the statute of limitations. However, this does not prevent its collection. Notes that have expired are no longer considered negotiable instruments and cannot be enforced through promissory note execution procedures. They can, however, be subject to non-executory legal proceedings. If this happens, the debtor may object and claim no debt, which could result in the suspension of the proceedings.

The expiration of the three-year period does not mean that you cannot initiate enforcement proceedings. The general statute of limitations is ten years. Within the first three years, the enforcement method is a specialized attachment proceeding for negotiable instruments. The debtor's objection does not stop the attachment process. However, if the debtor objects after three years, the enforcement process halts. In such cases, the creditor must apply to the court to overturn the objection and prove their claim, otherwise, the debtor's objection will not be dismissed.

Semosis: Managing Promissory Notes Easily

With the digital promissory note platform Semosis, you can easily track the due dates of your promissory notes and collect payments online 24/7, regardless of time and location.