Under Article 811 of the Turkish Commercial Code (TCC No. 6102), check compensation is a statutory financial remedy. If a check is presented and found to be partially or fully dishonored due to insufficient funds at the drawee bank, the drawer (issuer) is statutorily obligated to pay a 10% check compensation fee over the dishonored amount, in addition to indemnifying any further damages suffered by the holder. Consequently, the lawful holder is entitled to demand the principal check amount plus the 10% compensation from the drawer.
In commercial practice, creditors often improperly include endorsers (indorsers) when enforcing check compensation claims. However, under Turkish law, **only the drawer (issuer) and the avalist (guarantor) guaranteeing the drawer are liable for check compensation**.
Liability of Endorsers and Enforcement Objections
While endorsers in the chain of title are recourse debtors responsible for the principal amount, interest, and protest expenses, **they cannot be held liable for check compensation**. If an execution proceeding including check compensation is initiated against an endorser, the endorser can file an objection before the Enforcement Court under the Execution and Bankruptcy Law (EBL) to obtain a **partial annulment of the execution proceeding limited solely to the check compensation portion**. The execution proceeding continues for the remaining principal debt and legal accessories.
Key Distinction: Status of the Drawer's Avalist
Pursuant to established Court of Cassation precedent and Article 702 of the TCC, a party providing an aval (guarantee) for the drawer assumes identical liability to that of the drawer. Therefore, while endorsers are exempt from check compensation, the guarantor (avalist) of the drawer remains directly liable for the 10% indemnity.
Precedent Court of Cassation Decisions
Court of Cassation, 12th Civil Chamber
Merit No: 2013/17726 | Decision No: 2013/24638 | Date: 01.07.2013
"Summary: A guarantor (avalist) incurs identical legal liability to the party for whom the guarantee was provided (TCC Art. 702). Check compensation applies to an avalist guaranteeing the drawer under the same principles. It is erroneous to relieve the drawer's avalist of liability for check compensation upon objection."
Court of Cassation, 12th Civil Chamber
Merit No: 2001/17167 | Decision No: 2001/17860 | Date: 02.11.2001
"Summary: The lawful holder may claim the check amount, interest, and protest expenses from an endorser via recourse. However, as only the drawer is liable for check compensation under commercial law, such indemnity cannot be demanded from an endorser."
Disclaimer: The information provided above is for general guidance purposes only and does not constitute formal legal advice. Consulting a qualified attorney is strongly recommended for specific legal disputes.