How Is A Promissory Note Prepared? How Is A Promissory Note Filled Out?
1- Payment Date: This is not a mandatory formality under these laws. A date written on the payment date constitutes a written declaration that payment will be made on that date. If a specific date has been agreed upon for payment/collection, the date must be written. Otherwise, a promissory note without a specified maturity date is payable on demand.
2- Turkish Lira: The amount specified on the bill represents the amount of the debt/receivable covered by the bill. As seen in the example image above, the amount of the bill, which is considered a valuable document, has #5,000# written on its right and left sides. Such symbols are written to prevent subsequent tampering with the bill, such as adding or removing numbers on its right and left sides.
3- Cents: This indicates the fractional part of the debt/receivable amount. If there is no fractional part, a dash is sufficient.
4- No: If there is more than one promissory note, the note number is written. This allows both the creditor and the debtor to keep track of which promissory note it is and how many more promissory notes remain.
5- Maturity: The payment date written at the top is written here as well. If the general practice is 10/29/2016, then 29 October 2016 is written at the top and bottom. The purpose here is to prevent confusion between the month and day and to make the content of the note clearer.
6- Creditor: The name of the real or legal person who is the creditor in the promissory note is written. If it is a legal entity (e.g., X Ltd. Şti, XXX A.Ş.), the official name of the company is written, and if it is a real person, it is written as Ali Akça.
7- Debt/Receivable Amount: The amount in question, whether in TL or foreign currency, is written in words, not numbers, as stated above. The purpose here is to prevent misinterpretation or miswriting of the amount and to confirm the amount. It is one of the elements that helps to understand if there are any changes or alterations made above or below.
8- Amount of Debt/Receivable: If there are fractions, they are written out in words.
9- Reason for the Debt: Here, the reason for the debt or receivable is explained. To put it more clearly, if money is given to someone with a commitment to pay on a certain date and this note is prepared in return, i.e., if it is prepared based on a cash debt, the phrase “in cash” is written in that section. If payment is to be made in exchange for goods and services, the phrase “in kind” is written. The purpose here is to give the parties the opportunity to prove their case, especially in cases of debt defense, denial, or objection.
For example, goods were purchased and a promissory note was prepared for two months later. The purchase of the goods, advance payments, invoices, delivery notes, and the contract provide the parties with the power of proof to present evidence to the courts in the event of a dispute, so that any injustice can be remedied.
10- Court: The court that will hear disputes arising from the promissory note is written. If the parties are in the same province, that province is specified; if they are in different provinces, the province they agree upon is specified; if they state that it is the subject of the endorsement or wherever it may be, it is noted as the courts of Turkey.
11- Debtor: This section contains the information of the debtor who undertakes to make the payment. If the debtor is a natural person, their name, surname, full address, and Turkish ID number must be written. If the person is a legal entity, the company name must be written as it appears in the trade registry gazette, official invoice, and stamp. The company’s direct stamp is also sufficient.
12- Date of issue: The date the promissory note was issued is written, noting when the agreement was signed, which also serves as evidence in the event of a possible dispute. A person who claims to have paid their debt can present the payment receipt, collection receipt, or bank statement and date to the judge for comparison with the promissory note.
13- Debtor’s signature: The name, surname, and signature of the debtor are included. The name and surname of the debtor should be written on the left side, and that person must sign.
In the case of companies with legal personality, the representative authorized to sign legally must sign below or above the company stamp or handwritten company information. This is important because if someone who is not authorized to sign does so, that person will be liable for the debt.
TTK m.613: “…Except for the signatures of the addressee or the drawer, every signature placed on the face of the bill of exchange shall be deemed an endorsement…”
14- Guarantor: If there is a guarantor agreement related to the debt covered by the valuable document, the guarantor’s name, surname, and signature are affixed. If the debtor fails to pay the debt and collection through seizure is not possible, the court will seek collection of the debt from the guarantor on behalf of the creditor. The guarantor is considered a secondary debtor.
15- Guarantor information: The name, surname, address, and Turkish ID number of the guarantor of the debt are written. A guarantor is not mandatory on the promissory note. The promissory note can be prepared without a guarantor.
16- Bill summaries: This section mainly facilitates the creditor’s work. When filing bills, the creditor can track their receivables based on information such as the debtor, maturity date, and amount without looking at the bill’s content. For the debtor, it can be filled out as a precaution against tampering, but it is not mandatory.
17- Bill contents, basis: This section, which is typically left blank, can include the contract (lease, guarantee, installment) for which the bill was prepared, if applicable. It is recommended to include this information.
>The party owing the debt must prepare the promissory note in their own handwriting.
>Before signing the promissory note, both parties must
The following details should be noted regarding bad faith, withdrawal, inability to pay, and evidence related to the case.
>The party owing the debt must write the promissory note in their own handwriting.
>Both parties must read the promissory note before signing it.
>After signing the promissory note, the debtor must obtain a photocopy.
>If there is a separate contract prepared for the promissory note, each party must have one copy.
>When the promissory note is paid, the signature section in particular should be torn off and discarded.
>A note stating that the amount has been paid and collected should be written on it.
>If possible, a receipt should be obtained with a note stating that it is for the promissory note prepared on this date for this amount.
>Even if paid, the promissory note should be kept for a period of time as a precaution against future disputes or counterfeit promissory notes.
>You should never sign a blank promissory note by saying “Here, fill it out.”