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CHAPTER 7

CHAPTER 7. OTHER 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.

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CHAPTER 7

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  1. CHAPTER 7 OTHER SECURITIES

  2. OTHER SECURITIES • COMMERCIAL PAPERS • BANKERS’ NOTES AND BANK GUARANTEED NOTES • ASSET-BACKED SECURITIES • REAL ESTATE CERTIFICATES • OVERSEAS CERTIFICATES • REVENUE SHARING CERTIFICATES

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. ASSET-BACKED SECURITIES • SECURITIZATION: CONVERTING ASSETS INTO MARKETABLE SEC. • IN TURKEY, THEY CAN BE ISSUED BY: • GENERAL FINANCE CORP. • BANKS • FINANCING CORP. • LEASING CORP.

  8. 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.

  9. 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

  10. ASSET-BACKED SEC. cont • COMMERCIAL RECEIVABLES ARE MADE UP OF; • DRAFTS, BILLS OF EXCHANGE (POLİÇE) • PROMISORY NOTES (BONO) • CHECKS

  11. 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)

  12. 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.

  13. 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.

  14. REAL ESTATE CER. cont. • COMMITMENTS OF THE ORIGINATOR; • PRIMARY; TO PASS THE TITLE DEEDS TO THE HOLDER WITHIN THE PERIOD SPECIFIED.

  15. 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.

  16. 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.

  17. 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.

  18. REVENUE SHARING CER. cont. • THEY CAN BE EASLY CONVERTED INTO CASH. • 3-5 YEARS. • THEY ARE TANGIBLE. • CAN BE GIVEN AS COLLATERAL.

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