Project Finance 2020

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The Turkish security law regime allows lenders in a typical project finance transaction to obtain a security interest over the following main categories of project company assets: real estate (eg, a mortgage), the project company's movable assets, and the project company's receivables. In a classic non-recourse project finance transaction, the lenders will have a security interest over the project company's rights to the project land (which in most cases concerns a servitude right rather than ownership), the shares of the project company, the project company's receivables arising from project documents, including the main project agreement, insurance proceeds and the project company's bank accounts. In certain sectors, the lenders can also acquire security interest over the goods produced or extracted by the project company, such as in the case of mining projects.

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