Types of Maturity Dates in Promissory Notes

The types of maturity dates for promissory notes are addressed between Articles 703 and 707 of the Turkish Commercial Code. Accordingly, there are four types of maturity for promissory notes: payable on a specific date, payable a certain time after the date of issue, payable upon presentation, and payable a certain time after presentation. According to Article 703, promissory notes with different maturity dates or successive maturity dates are invalid.

Types of Maturity for Promissory Notes

1. Payable on a Specific Date

This is the most commonly used maturity type in practice. The maturity date is written clearly, without leaving room for doubt, and it must be a day that can be easily and definitively determined by everyone. While there is no specific regulation in the law regarding how the date should be written (day, month, year), different interpretations exist. For example, if the promissory note was issued on 11.03.2015 and the maturity date is written as 31.08, some argue that the note should be invalid since the year is not specified, while others argue that the year can be inferred from the issue date. It is also possible to specify significant dates such as “the first day of Ramadan in 2021” as the due date, as it is widely known.

2. Payable a Certain Time After the Date of Issue

Promissory notes that are payable a certain time after the issue date require the debtor to pay the note after a specific period from when it was issued. According to the Turkish Commercial Code, the issue date must be clearly stated on the note. If no issue date is provided, the note is considered invalid. For example, if the maturity is specified as "30 days after the issue date," it falls under this type. However, if the note states "three months after the issue date," without specifying an exact date, it cannot be considered valid.

3. Payable Upon Presentation

Promissory notes payable upon presentation must be paid when they are presented to the issuer. These types of notes do not specify a due date and are covered under Article 704 of the Turkish Commercial Code. Such notes must be presented for payment within one year of the issue date. However, the issuer or endorsers may shorten this one-year period. If a note issued on 01.01.2020 is to be paid upon presentation, it must be presented to the issuer by 01.01.2021 at the latest. The endorsers can only shorten this period, not extend it.

4. Payable a Certain Time After Presentation

Promissory notes payable a certain time after presentation involve two stages of submission: first, the note must be presented within one year from the issue date to determine the due date, and second, it must be presented again for payment on or shortly after the due date. According to Article 779 of the Turkish Commercial Code, notes of this type must be presented to the issuer within one year of the issue date, but this period may be shortened by the issuer or endorsers.

Manage Your Promissory Notes with Semosis

With Semosis, regardless of the maturity type, you can manage your promissory notes online, create new digital promissory notes, or upload existing ones to the platform. You can also send automatic reminders to debtors as the maturity date approaches, ensuring smooth payment management.