The Role of Pledging Receivables as Collateral in Finance Facility AgreementsWith Particular emphasis on Finance Facility Agreements in Petroleum Industry

Todays complicated international business relationships has requirements that need to be supported by national legal systems. Therefore, to have an active developed economy, countries attempt to make their legal systems flexible enough to support new requirement of modern industries. One of these new requirements is taking receivables as collateral to secure finance facility agreements. Under our mortgage law, taking receivables as security is categorized as intangible collateral which is prohibited based on Civil Code. Now, this question is raised that whether our legal system is ready to recognize intangible collaterals? Since today the international investments and trades are increased, it is expected that legal systems recognize receivables as collateral. This can be a secure mechanisms for ensuring investors that their investments will be returned. It seems that in today's international trads there is no room for traditional securities such as mortgaging tangebels. It is because the merit of transactions is diferent and the requiered investments are huge, thus, traditional securities can not cover such transactions.