The Liability Arising From the Non-Observance of the Burden of Notice at Bills of Exchange

The burden of notice at bills of exchange is regulated as the 723th article of Turkish Commercial Law, in policy provisions (TTK m.714-722). Burden of notice is implemented for other bills of exchange due to attributions in the 778th and 818th articles of the same law. According to the 723th article of Turkish Commercial Law, the holder must give notice of non-acceptance or nonpayment to his endorsers and to the drawer within the four working days which follow the day for protest or, in case of a stipulation “free of expenses”, the day for presentment. Furthermore, apart from the holder, the endorser who receives the notice, must notify his endorser. By this way legislator aims to inform all the parties who enters under the liability of paying the amount of policy. Although the burden of notice at bills of exchange is regulated as compulsory legal rule, it has not gained a place in practice. Infringement of the burden of notice causes pecuniary loss and intangible damages for the debtors of bill who cannot have chance to be informed about non-acceptance or nonpayment and make preparation. As a result of this, the burden of notice at bills of exchange continues its existence as a problematic subject both in practice and in trial. In this article, the term of the burden of notice in bills of exchange, reasons of not having place in practice and the problems generating from this, and the changes that can be made for the enforcement of burden of notice are analyzed.