APPRENTICESHIP CREDIT REGULATIONS OF THE UNION OF BAR ASSOCIATIONS OF TURKEY

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APPRENTICESHIP CREDIT REGULATIONS (*)
OF THE UNION OF BAR ASSOCIATIONS OF TURKEY


PART ONE
General Provisions

Scope
Article 1 – These Regulations cover the principles, conditions and the rules for the distribution of the credit to be extended to attorneyship apprentices by the Union of Bar Associations of Turkey.

Purpose
Article 2 – The purpose of these Regulations is to establish the principles and conditions for the credit, and to determine its beneficiaries, amount, manner of repayment, and the manner of division among and spending by the Union of Bar Associations of Turkey and the bar associations, of the money collected through repayments and remaining after the payment in order to support attorneys and promote professional development.

Legal basis
Article 3 – These Regulations have been prepared in accordance with Article 27 of the Attorneyship Law, number 1136, dated 19 March 1969.

PART TWO
Source Of The Credit

Source of the credit
Article 4 – The Apprenticeship Credit Fund, which is the source of the credit to be extended to apprentices, consists of the cost of the stamps to be affixed to the originals and facsimiles of the powers of attorney or certificates of authorization to be presented to authorities by the attorneys without a law degree and the overseers of legal affairs exercising the powers of regular attorneys in accordance with Provisional Article 13 and 17 of the Attorneyship Law, the funds to be accumulated from the repayment of credit, and their revenues.
All organizations and agencies that are under the obligation to present powers of attorney must also affix stamps to the originals and facsimiles of the powers of attorney or certificates of authorization.

Value of the stamp to be affixed
Article 5 – The value of the stamp to be affixed to powers of attorney or certificates of authorization or similar documents will be equal to the amount indicated in the tariff for charges for facsimiles of powers of attorney, included in the section on jurisdictional charges of the Law of Charges, number 492, dated 2 July 1964, in effect on the date the stamp was affixed.

Printing of the stamps
Article 6 – The apprenticeship credit stamps will be printed by the Union of Bar Associations of Turkey.

Distribution of the stamps
Article 7 – The Union of Bar Associations of Turkey will decide the manner in which the apprenticeship credit stamps will be distributed to bar associations against the payment of their value. The distribution may also be ordered to an organization against payment.




PART THREE
Determination Of The Amount Of The Credit

Amount of the credit
Article 8 – The amount of credit to be extended to apprentices out of the Apprenticeship Credit Fund will be determined by the board of directors of the Union of Bar Associations of Turkey in the month of January every year.
The amount will be determined by taking into consideration the number of apprentices serving apprenticeship in bar associations, the money accumulated in the fund, and the amount for that year indicated in the tariff for charges for facsimiles of powers of attorney, included in the section on jurisdictional charges of the Law of Charges.
The new amount determined will be applicable to those starting their apprenticeship training after the date of determination. If the newly determined amount is greater than that of the preceding term, apprentices in beneficiary status will be allowed to benefit from the differential amount by fulfilling the formal conditions for receiving credit.




PART FOUR
Extension of Credit to Apprentices

Application for credit
Article 9 – Apprentices must be entered in the apprenticeship roster of any bar association in order to be able to benefit from the credit. An apprentice wishing to receive credit will complete the credit application form and apply to the bar association where his/her name is listed in the roster together with the other documents required.
While an honor system will be observed regarding the truth of the information declared by apprentices, the bar association may investigate the veracity of the data furnished in the application form if deemed necessary. The bar association will forward the application file to the Union of Bar Associations of Turkey with precedence.

Documents to be appended to the application
Article 10 – The following documents will be appended to the application for credit:
a) Application form as prescribed by the Union of Bar Associations of Turkey.
b) Letter of the bar association verifying the apprentice's enlistment in its apprenticeship roster.
c) Credit contract indicating the obligations to be undertaken by the apprentice, the manner of repayment, address for the delivery of notices, and papers pertaining to the surety.
d) Other information and documents required for the payment of the credit.

Acceptance or rejection of the application for credit
Article 11 – <Amended as per Article 24804/2, Official Gazette dated 3 July 2002>
Credit applications made to bar associations will be forwarded to the Union of Bar Associations of Turkey. They will be accepted after their compliance with the required conditions has been ascertained by a review by members authorized by the board of directors of the Union of Bar Associations of Turkey.
Applications not considered to be fulfilling the required conditions as a result of the review will be addressed by the board of directors for a decision. The decision on the credit application will be communicated to the apprentice and his/her bar association within thirty days.

Duration of credit
Article 12 – <Amended as per Article 24804/3, Official Gazette dated 3 July 2002>
Credit will be extended to an apprentice on the apprenticeship roster for the scheduled duration of the legal period of apprenticeship starting on the date of application. Apprentices requesting credit for shorter periods than the apprenticeship period must indicate this fact in their application form. In the event the duration of the apprenticeship becomes prolonged for valid reasons, credit payments will continue for the extra duration. However, credit will be discontinued for the extra duration under circumstances where the apprenticeship has been prolonged in accordance with Article 25 of the Attorneyship Law.

Payment of credit
Article 13 –<Amended as per Article 24804/4, Official Gazette dated 3 July 2002>
A file will be opened at the Union of Bar Associations of Turkey for any apprentice who has gained beneficiary status for credit, and the payment records and other relevant data will be kept in this file. The contents of this file will serve as a basis in the event of discrepancies in or disputes over records.
An apprentice whose application for credit has been accepted will be issued a credit allocation number. The Union of Bar Associations of Turkey may enter into an agreement with a bank for payments or may opt for another payment system offering fast, practical, and secure service depending on the circumstances at the time. Credit payments may be effected either in monthly advances throughout the duration of the apprenticeship period or in installments advanced up to three months provided that funds permit. In payments through a bank, the installments will be considered as having been paid to the apprentice on the date they have been deposited in his/her account.

Transfer of the apprenticeship
Article 14 – The credit payments will continue in the event an apprentice transfers his/her apprenticeship to another bar association. The sending and receiving bar associations will communicate the dates of transfer and acceptance to the Union of Bar Associations of Turkey by the fastest means.
The Union of Bar Associations of Turkey will continue credit payments to a new account to be opened with a bank where the new bar association of the transferring apprentice is located.
PART FIVE
Suspension And Termination Of Credit

Reasons for suspension of credit
Article 15 – In cases where the apprentice takes a break from his/her apprenticeship under circumstances permitted by the Attorneyship Law, the fact will be reported by his/her bar association to the Union of Bar Associations of Turkey and his/her credit payments will be suspended.
The payments will continue as before once the circumstances for the suspension have been removed.

Reasons for termination of credit
Article 16 – Credit payments will be terminated under such circumstances as would occur when an apprentice receiving credit <...>  has his/her name deleted from the attorneyship roster for a reason other than transfer to another bar association, loses his/her qualifications at the time of commencement of the apprenticeship, is discovered to have made false declarations at the time of the application for credit, does not participate in the training activities organized by the bar association, is determined to be violating the provisions in the Attorneyship Law and the Regulations issued under that Law and the rules of the profession, and fails to discharge the assigned duties. Under such circumstances, the credit received will become due for repayment in its entirety thirty days later without having recourse to serving a notice of default. This debt will be collected from the debtor and his/her sureties jointly and severally including legal interest.

Conduct of investigation
Article 17 – When an impediment arises to an apprentice's receipt of credit, such impediment will be investigated by the bar association the apprentice is listed with. Credit payments will continue during the investigation. The decision made as a result of the investigation will be reported to the Union of Bar Associations of Turkey and communicated to the apprentice. The apprentice may raise an objection against this decision with the board of directors of the Union of Bar Associations of Turkey. The decision made by the board of directors of the Union of Bar Associations of Turkey will be final.
The repayment of the credit will become due on the date the decision becomes final.
The provisions in the Attorneyship Law regarding the method of investigation and the right of defense will be applied here, as well. Furthermore, the provision in the last paragraph of Article 17 of the Attorneyship Law will also be reserved for cases when the decision made in reference to the investigation states that the declarations made at the time of application for credit have been discovered to be false.
PART SIX
Accounting, Repayment, Or Cancellation Of The Debt For The Credit

Accounting and communication of the debt for the credit
Article 18 – <Amended as per Article 24804/6, Official Gazette dated 3 July 2002>
The credit paid to an apprentice in monthly installments will be debited to his/her account as of the dates of payment. The amount to be repaid will be determined by increasing the amount of debt on the date it became due by thirty percent in interest, and the total amount debt thus calculated will be communicated to the apprentice and his/her sureties.
The interest will be simple and incurred only once. No other interest will be charged if the debt is repaid in its entirety within the repayment period stated in Article 19 of the present Regulations.

Repayment of the debt for the credit
Article 19 – <Amended as per Article 24804/7, Official Gazette dated 3 July 2002>
The debt an apprentice has incurred for the credit will become due for repayment twenty-four months after the completion of the apprenticeship. The total amount of debt calculated in accordance with Article 18 of the present Regulations will be repaid, as of the date it became due, in monthly installments the number of which will not be greater than the number of installments the credit was paid in. No interest will be incurred if the total amount of debt is repaid in its entirety before the due date.
The sureties will also be jointly and severally liable for the debt on the credit.
Extensions of the period of apprenticeship in accordance with Article 25 of the Attorneyship Law will not be taken into consideration in the determination of the date of commencement of the repayment.

Default in the repayment of monthly installments
Article 20 – When a debtor falls in default in any installment, a written warning will be communicated to the debtor and his/her sureties inviting them to effect the repayment within ten days. The debt will become due in its entirety if the defaulted installment is not repaid within this period despite the warning. This debt will be collected from the debtor and his/her sureties jointly and severally including legal interest to be incurred starting from the date the debt became due.

Cancellation of the debt on the credit
Article 21 – The unrepaid debts on the credit of debtors who die while serving apprenticeship or become disabled for work as documented by a report issued by the medical board of a full-service hospital will be cancelled. The sureties will also benefit from the cancellation.


PART SEVEN
Expenditure Of The Amount Remaining After Payments Of Credit

Amount remaining after payments of credit
Article 22 – The Union of Bar Associations of Turkey will prepare the final accounts for the preceding year at the end of the month of January every year in order to determine the amount remaining after credit payments. Once the stamp value for the new year and the possible number of apprentices to apply for credit in the new year have been determined, twenty-five percent of the amount estimated to remain will be deposited in the account of the Union of Bar Associations of Turkey and thirty percent in the accounts of bar associations in equal amounts. The remainder will be deposited in the accounts of bar associations in proportion to the number of attorneys enrolled with each bar association as of the end of the year the accounting is based on.

Spending principles
Article 24 – In spending the money transferred to them from the Apprenticeship Credit Fund, bar associations will give priority to the realization of the projects they will develop and submit to the Union of Bar Associations of Turkey to offer solutions to the issues of social security, health, and on-the-job training of their enrolled attorneys and listed apprentices.
The manner of spending of the transferred amounts will be prescribed in the house regulations of the bar associations.



PART EIGHT
Miscellaneous Provisions

Address for service of notice
Article 25 – A notice served to the last known address will be considered valid unless the apprentices who receive credit and are effectively in debtor status on the credit, and their sureties, communicate in writing any changes to the address they declared as their address for service of notice at the time of their application for credit not later than one week from the date of such change.

Provisional Article 1 – No credit will be extended to apprentices for as long as the funds accumulated in the source consisting of the stamp values to be collected as of 10 May 2001 in accordance with Article 27 of the Attorneyship Law fall short of covering the total amount of credit to be extended to apprentices.
The extension of credit will commence as of 1 January 2002.

Entry into effect
Article 26 – These Regulations will enter into effect on the date of their publication.

Enforcement
Article 27 – The provisions in these Regulations will be enforced by the board of directors of the Union of Bar Associations of Turkey.


(*)  The present Regulations have been published in the Official Gazette issue 24615 dated 19 December 2001.  The text has been changed to reflect the amendment to these Regulations published in the Official Gazette issue 24804 dated 3 July 2002.