What Is a Guarantee Company?

When individuals or enterprises borrow from banks, in order to reduce risks, banks do not directly lend to individuals, but instead require borrowers to find a third party (guarantee company or a well-qualified individual) to guarantee it. The guarantee company will allow the borrower to issue relevant qualification certificates for review according to the bank's requirements, and then submit the audited information to the bank. The bank will review the loan and the guarantee company will charge the corresponding service fee.

Guarantee company

When an individual or business borrows money from a bank, in order to reduce the risk, the bank does not directly lend to the individual, but instead asks the borrower to find

How to judge whether a guarantee company is qualified or not should pay attention to the following seven criteria.

1. Satisfying the minimum amount of registered capital (5 million yuan of paid-in monetary capital; 100 million financing guarantee companies engaged in re-guarantee business, and operating continuously for more than two years).

2. There are qualified

Because the marketing cost of bank microloans is relatively high, it is difficult for small businesses to apply for loans directly from banks. This causes small companies to often seek help from financing institutions such as guarantee agencies when financing needs are needed. Choose high-quality projects to recommend to cooperative banks, and increase the success rate of financing, which will reduce the marketing cost of bank small loans.

In addition, in terms of loan risk control, banks are reluctant to invest in small loans. One important reason is that banks have higher management costs for such loans, and the benefits are not obvious. For such loans, guarantee institutions can adopt Optimize the management process in the loan, and form a personalized service for post-loan management, share the management cost of the bank, and avoid the worries of the bank.

Secondly, after the risk is released, the advantages of the guarantee institution are even more irreplaceable. Bank direct loan projects have risks. Disposal of collateral often takes a long time, high litigation costs, and poor liquidity. The cash compensation of guarantee institutions has greatly solved the difficulty of bank disposal. Some guarantee institutions do it for 1 month (investment guarantee or even 3 days)

Provide SMEs with loans, financing leases and other economic contract guarantees; personal consumer loan guarantees, personal business loan guarantees, automobile consumer credit guarantees, project investment, financing management, etc.

1.Application: The enterprise applies for a loan guarantee

2. Inspection: Investigate the business situation, financial situation, mortgage assets, tax situation, credit situation, and business owner of the enterprise, and determine whether the guarantee is preliminary.

3. Communication: Communicate with the loan bank, further grasp the corporate information provided by the bank, and clarify the amount and term of the bank's proposed loan.

4. Guarantee: Signing guarantee and counter-guarantee agreements with enterprises, legal procedures for asset mortgage and registration, and signing guarantee contracts with loan banks to formally establish guarantee relationships with banks and enterprises.

5. Lending: Banks issue loans to enterprises on the basis of reviewing guarantees, and at the same time charge guarantee fees to enterprises.

6. Tracking: Track the company's loan usage and business operations, and most directly track and examine the company's operating status through quarterly tax increases, power consumption, and cash flow growth or reduction.

7. Tips: One month before the company repays the loan, it is reminded in advance so that the company can prepare for the loan early and ensure the normal operation of the company's capital flow.

8. Cancellation: With the bank repayment slip of the enterprise, the mortgage registration can be cancelled, and the guarantee relationship with the bank and the enterprise can be cancelled.

9. Records: Record the credit status of the guarantee, which is divided into four levels: normal, abnormal, overdue and bad debts, and provide credit records for subsequent guarantees.

10. Archiving: The various agreements with banks and enterprises, the documents after repayment of loans, and the certificates for lifting guarantees will be archived and sealed for future reference.

First, any investment has risks. Good guarantee companies will have a complete risk control system and an excellent mechanism for continuous learning of risk prevention and control. This is particularly important when selecting a guarantee company. Only by controlling the risks well can the interests of investors be guaranteed.

Second, the legal texts are rigorous and standardized. Incumbent guarantee companies often strictly abide by national laws and regulations, and will not operate illegally for short-term benefits, nor will they touch the industry's "high-voltage lines." In operation, any illegal or unexpected factors may cause potential threats to the interests of investors, so it is necessary to formulate a rigorous legal text. The rights of investors, borrowers and guarantors and their respective responsibilities in the contract Obligations are clearly defined. Only in this way can the interests of all parties be fully guaranteed. This is also an important aspect of judging a guarantee company.

Third, fully understand the assets and social reputation of the guarantee company. Usually a good guarantee company has good assets and a more mature operating model, and these will earn it a good social reputation and reputation.

Fourth, you can learn from the operating life of the guarantee company, the number of customers, and no overdue days. You can also judge the company's corporate culture, discipline, and other details from the details of the employee's dress, behavior, and other details. Company conditions.

How to identify a formal guarantee company

Beijing TV s The Rule of Law broadcasts various scams every day, and there are still people who are fooled. People who do nt necessarily read this article will not be fooled afterwards, just because they often hear customers at work before they apply for loans The experience of being cheated, so I will sort out some common scammer tricks under the banner of scammers who can handle loans for customers for your reference. I also hope to help you identify the true and false, beware of being fooled!

Fraud 1. Large-amount credit cards: This kind of fraud can often deceive some middle-aged people who lack loan knowledge and are eager to spend money. Liars generally claim to be able to do the procedures for you to issue a large credit card and then help you withdraw cash and charge you a commission. In the end, the credit card fee will not be refunded if you cannot handle it! First of all, the bank's credit cards are free, and the size of the credit card is based on the personal assets and credit information. It is not that you pay more if you pay more. A good relationship. A good relationship with the president can help you approve large credit cards. These fees are also a lie to the bank. Most people can think of it after they have thought about it. How much can you pay for a credit card, up to 200 yuan? No matter how much you do nt want to pay, let alone say that the credit card approval does not belong to the president, what is the identity of the other president? For your small profit of 200 yuan to go against the regulations of the China Banking Regulatory Commission and risk being fired to give you a credit card?

Deception II. Unsecured Loans: This deception often deceives those who have just entered the society and want to start their own business without any assets. In today's society, it is so difficult to borrow money between relatives and friends. Why should you not loan anything to your non-relative loan company? Really think that like in the Hong Kong gangster movie, you do nt pay back and find a few thugs to go to your house and throw gasoline for money? This so-called unsecured company usually gives you a very good description of the prospects in advance, and then charges you so-called survey fees, home visit fees, handling fees, etc ... The final result is that the so-called loan company runs away or you Is not eligible for company lending requirements, but the fees you paid previously cannot be refunded! What's more, it goes directly to the first deceit and lets you do a large credit card ...

Fraud 3. Arranged loans: This kind of fraud often deceives people who have conditions that do not meet bank loans and personal credit and conditions that do not meet bank lending conditions. This scam works the same as a credit card. Regardless of whether your mortgaged property meets the bank loan requirements or whether your personal creditworthiness meets the bank requirements, we can make a loan to you through a black box relationship with the bank and the president. Now that you know that you don't meet the bank's requirements, if we want to help you make a loan, you have to pay some fees to get some people in the bank ... Needless to say the final result? It s not that people go to the building or the fee cannot be refunded!

Since I entered the guarantee industry, since I think that providing loans to customers who need loans is a cause to help others achieve their own value, it is a business that can add icing on the cake and give credit to customers. Those who need loans often need funds because of lack of money. Only to apply for a loan, and these scammers use other people's funds and anxiety to deceive them again. These costs are undoubtedly worse and worse. Will the conscientiously cheated money be so secure?

Here I will tell you how a formal guarantee company or loan company should serve customers!

1. All loan companies' guarantee policies and regulations are subject to the bank's credit policy. Loan guarantee companies that banks cannot do must be inoperable. Even banks cannot just promise that customer loans will be successful, so guarantee companies cannot make any promises to you. The guarantee company appears to provide guarantee for your loan as the second repayer of the bank loan, so the guarantee company is not necessarily a successful company. If you are doubting whether your creditworthiness can pass the bank review and someone tells you that we can help you make a loan, you have to think about whether you want to fall into a trap!

2. Since the guarantee company provides guarantee services for your loan, of course, the guarantee fee can only be paid when the loan is realized, and the regular guarantee company will not charge any customer's so-called handling fee, home visit fee, material fee. The only thing you need to pay before the loan is the cost of property evaluation, and if the loan is unsuccessful, the guarantee company must be penniless. The evaluation report fee paid before can also be returned to the evaluation report, and the evaluation company charges 100-200 yuan for transportation and work costs.

In short, a word, many people have said, I also stabbed again, there is no pie in the sky! When making any loan, you need to pay some unneeded expenses first or give you promises when the sky is falling, you should think about it, maybe this is a trap!

Judgment criteria for bad guarantee companies

1. The formal loan service is unsuccessful, no fees will be charged, and no interest will be charged first.

2. The bank interest rate is the lowest in the market year-on-year, and there is no lower interest rate than the bank.

3. There is no chance of loan for personnel with "no education, no job, no fixed assets".

4. Companies that promise "everything can lend everything" must be very vigilant.

5. It is the real scammer who does not meet, does not review the information, promises to sign the contract, and pays the commission fee.

The three checks of guarantee refers to the pre-guarantee investigation, the time check, and the post-warranty check. The three checks is one of the core contents of the credit and guarantee management system. Proven methods of guaranteeing work.

Since 2009, the nationwide guarantee company's rectification preparation work has begun. In 2010, it began to enter into substantial rectification work, including Guangdong, Shanghai, Shandong and other places have successively issued rectification plans. The main contents of the rectification include the review of approval procedures, the standardization of business scope, and the establishment and improvement of risk control systems.

On September 27, 2010, Guangdong issued a "Government (Administrative Measures for Financing Guarantee Companies) Implementation Regulations" in the form of a provincial government order and set out to clean up and rectify guarantee institutions across the province.

Order of the President of the People's Republic of China No. 50

Time of promulgation: 1995-6-30 Issue unit: Standing Committee of the National People's Congress

(Adopted at the 14th meeting of the Standing Committee of the Eighth National People's Congress on June 30, 1995)

Chapter I General Provisions

Article 1 This Law is enacted in order to promote the financing of financial resources and the circulation of commodities, guarantee the realization of claims, and develop a socialist market economy.

Article 2 In economic activities such as lending, trading, cargo transportation, processing contract, etc., where creditors need to guarantee the realization of their claims by means of guarantee, a guarantee may be established in accordance with the provisions of this Law.

The guarantee methods provided for in this Law are guarantee, mortgage, pledge, lien and deposit.

Article 3 Guarantee activities shall follow the principles of equality, willingness, fairness, and good faith.

Article 4 When a third party provides a guarantee to a creditor for a debtor, the third party may require the debtor to provide a counter-guarantee.

The counter-guarantee applies to the provisions of this law.

Article 5 The guarantee contract is a subordinate contract of the master contract. The master contract is invalid and the guarantee contract is invalid. If there is another agreement in the guarantee contract,

After the guarantee contract is confirmed to be invalid, if the debtor, guarantor or creditor is at fault, they shall each bear corresponding civil liabilities according to their fault.

Chapter II Guarantee

Section 1 Guarantees and Guarantors

Article 6 The term "guarantee" as mentioned in this Law refers to the behavior of the guarantor and creditor that when the debtor fails to perform the debt, the guarantor shall perform the obligation or assume responsibility in accordance with the agreement.

Article 7 A legal person, other organization or citizen with the ability to pay off debts on his behalf may act as a guarantor.

Article 8 State organs may not be guarantors, except those approved by the State Council for the use of loans from foreign governments or international economic organizations for refinancing.

Article 9 Schools, kindergartens, hospitals, and other public institutions and social organizations for public welfare purposes may not be guarantors.

Article 10 The branches and functional departments of enterprise legal persons shall not be guarantors.

Where a branch of an enterprise legal person has a legal person's written authorization, it can provide a guarantee within the scope of authorization.

Article 11 No unit or individual may force banks or other financial institutions or enterprises to provide guarantees for others; banks or other financial institutions or enterprises shall have the right to refuse to force them to provide guarantees for others.

Article 12 Where there are more than two guarantors for the same debt, the guarantor shall bear the guaranty liability in accordance with the guaranty share agreed in the guaranty contract. If there is no stipulated guarantee share, the guarantor shall bear joint and several liabilities, and the creditor may require any guarantor to bear all the responsibilities for guarantee, and the guarantor shall have the obligation to guarantee the realization of all the claims. The guarantor who has already undertaken the guarantee responsibility has the right to recover from the debtor, or to require other guarantors who have joint and several liabilities to pay off their share.

Section 2 Guarantee Contracts and Guarantee Methods

Article 13 The guarantor and creditor shall conclude a guarantee contract in writing.

Article 14 The guarantor and creditor may conclude a guarantee contract separately for a single main contract, or they may agree to enter into a guarantee contract for a loan contract or a certain commodity transaction contract that occurs continuously within a certain period within the maximum credit limit.

Article 15 A guarantee contract shall include the following:

(1) the type and amount of the main creditor's right guaranteed;

(2) the time limit for the debtor to perform the debt;

(3) Ways of guarantee;

(4) the scope of the guarantee;

(5) Guarantee period;

(6) Other matters that both parties think need to be agreed.

If it is guaranteed that the contract does not fully contain the provisions of the preceding paragraph, it may be supplemented.

Article 16 The guarantee methods are:

(1) General guarantees;

(2) Joint and several liability guarantees.

Article 17 The parties stipulated in the guarantee contract that if the debtor is unable to perform the debt, the guarantor shall assume the responsibility for guarantee, which shall be a general guarantee.

The guarantor of a general guarantee may refuse to assume the responsibility of guarantee to the creditor before the main contract dispute has not been tried or arbitrated, and the debtor's property has not been able to perform the debt according to law enforcement.

Under any of the following circumstances, the guarantor shall not exercise the rights specified in the preceding paragraph:

(1) The debtor's domicile has changed, causing the creditor to require him to have major difficulties in fulfilling his debt;

(2) The people's court accepts the debtor's bankruptcy case and suspends the enforcement procedures;

(3) The guarantor waives the rights provided in the preceding paragraph in writing.

Article 18 Where the parties stipulate in the guarantee contract that the guarantor and the debtor are jointly and severally liable for the debt, the joint and several liability is guaranteed.

If the debtor of joint and several liability guarantees fails to perform the debts at the expiry of the debt performance period stipulated in the main contract, the creditor may require the debtor to fulfill the debts, or it may require the guarantor to assume the guarantee responsibility within its guarantee scope.

Article 19 If the parties have not agreed on the guarantee method or the agreement is not clear, they shall bear the guarantee responsibility in accordance with joint and several liability guarantees.

Article 20 The guarantor of general guarantee and joint and several liability guarantee shall enjoy the right of defense of the debtor. If the debtor waives the right to defend against debts, the guarantor still has the right to defend.

The right of defense refers to the right of the debtor to exercise the right of claim against the creditor according to legal reasons when the creditor exercises the creditor's right.

Section III Liability

Article 21 The scope of the guarantee includes the main creditor's right and interest, liquidated damages, damages, and the cost of realizing the debt. If there is another agreement in the guarantee contract, the agreement shall be followed.

If the parties have no agreement on the scope of the guarantee or the agreement is not clear, the guarantor shall be liable for all debts.

Article 22 During the guarantee period, if the creditor transfers the main creditor's right to a third party in accordance with the law, the guarantor shall continue to assume the guarantee responsibility within the scope of the original guarantee. If there is another agreement in the guarantee contract, the agreement shall be followed.

Article 23 During the guarantee period, if the creditor permits the debtor to transfer the debt, it shall obtain the written consent of the guarantor, and the guarantor shall no longer bear the guarantee responsibility for the debt transferred without its consent.

Article 24 Where the creditor and the debtor agree to change the main contract, the guarantor shall obtain the written consent of the guarantor. Without the written consent of the guarantor, the guarantor shall no longer bear the guaranty liability. If there is another agreement in the guarantee contract, the agreement shall be followed.

Article 25 If the guarantor and creditor of the general guarantee do not agree on the guarantee period, the guarantee period shall be six months from the date on which the main debt performance period expires.

During the guarantee period stipulated in the contract and the guarantee period stipulated in the preceding paragraph, if the creditor has not instituted a lawsuit against the debtor or applied for arbitration, the guarantor shall be exempted from the guarantee liability; if the creditor has initiated a lawsuit or applied for arbitration, the provisions of the limitation period of litigation shall apply.

Article 26 If the guarantor and the creditor of joint and several liability guarantees have not agreed on the period of guarantee, the creditor shall have the right to require the guarantor to assume the guarantee responsibility within six months from the date on which the debt performance period expires.

If the creditor does not require the guarantor to assume the guaranty liability during the guaranty period stipulated in the contract and the guaranty period specified in the preceding paragraph, the guarantor shall be exempted from the guaranty liability.

Article 27 The guarantor guarantees consecutive claims in accordance with the provisions of Article 14 of this Law. If the guarantor has not agreed on the period of guarantee, the guarantor may at any time notify the creditor in writing to terminate the guarantee contract, but the guarantor shall be liable for the claims that occurred before the creditor was notified Take responsibility for warranty.

Article 28 Where the same creditor's right has both a guarantee and a physical guarantee, the guarantor shall assume the guarantee responsibility for the creditor's right other than the physical guarantee.

If the creditor waives the security of the property, the guarantor shall be exempted from the guarantee responsibility to the extent that the creditor waives the right.

Article 29 If a branch of an enterprise legal person enters into a guarantee contract with a creditor without the written authorization of the legal person or exceeding the scope of authorization, the contract is invalid or the part beyond the scope of authorization is invalid. If the creditor and the enterprise legal person are at fault, they shall be based on their respective faults. Bear the corresponding civil liability; if the creditor has no fault, the corporate legal person shall bear the civil liability.

Article 30 Under any of the following circumstances, the guarantor shall not bear civil liability:

(1) The parties to the main contract colluded to trick the guarantor into providing a guarantee;

(2) The creditor of the main contract adopts fraud, intimidation and other means to enable the guarantor to provide a guarantee against the true intention.

Article 31 After the guarantor assumes the guaranty liability, he has the right to recover from the debtor.

Article 32 After the people's court accepts a debtor's bankruptcy case, if the creditor fails to declare the creditor's right, the guarantor can participate in the distribution of bankruptcy property and exercise the right of recovery in advance.

Chapter III Mortgage

Section 1 Mortgages and Collateral

Article 33 Mortgage referred to in this law means that the debtor or a third party does not transfer the possession of the property listed in Article 34 of this law, and uses the property as a security for a creditor's right. When the debtor fails to perform his debts, the creditor has the right to be compensated preferentially at the discount of the property or at the price of auctioning or selling the property in accordance with the provisions of this Law.

The debtor or third party specified in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property providing the security is the collateral.

Article 34 The following property may be mortgaged:

(1) Houses and other fixed objects on the ground owned by the mortgagor;

(2) machines, transportation means and other property owned by the mortgagor;

(3) State-owned land use rights, houses and other fixed objects on the land that the mortgagor has the right to dispose of according to law;

(4) State-owned machines, transportation vehicles and other property that the mortgagor has the right to dispose of according to law;

(5) the land use right of barren mountains, barren ditches, barren hills, barren beaches and other barren land contracted by the mortgagor according to law and approved by the contracting party;

(6) Other property that can be mortgaged according to law.

The mortgagor may mortgage the property listed in the preceding paragraph.

Article 35 The creditor's right guaranteed by the mortgagor shall not exceed the value of its collateral.

After the property is mortgaged, the value of the property that is greater than the balance of the secured creditor's right may be mortgaged again, but may not exceed its balance.

Article 36 If a house on a state-owned land obtained according to law is mortgaged, the state-owned land use right within the occupied area of the house shall be mortgaged at the same time

If the state-owned land use right acquired by way of mortgage is mortgaged, the houses on the state-owned land shall be mortgaged at the same time.

The land use rights of township (town) and village enterprises shall not be mortgaged separately. If the buildings of township (town) and village enterprises are mortgaged, the land use right within the occupied area is mortgaged at the same time.

Article 37 The following property may not be mortgaged:

(1) land ownership;

(2) Collectively-owned land use rights such as cultivated land, house sites, self-reserved land, and self-reserved mountains, except as provided in Article 34 (5) and Article 36 (3) of this Law;

(3) Educational facilities, medical and health facilities, and other social public welfare facilities such as schools, kindergartens, hospitals, and other public welfare institutions;

(4) Property with unknown or disputed ownership or use rights;

(5) Property that has been sealed up, seized or supervised according to law;

(6) Other property that may not be mortgaged according to law.

Section 2 Mortgage Contract and Mortgage Registration

Article 38 The mortgagor and the mortgagee shall conclude a mortgage contract in writing.

Article 39 A mortgage contract shall include the following:

(1) the type and amount of the main creditor's right guaranteed;

(2) the time limit for the debtor to perform the debt;

(3) the name, quantity, quality, condition, location, ownership or ownership of the mortgaged property;

(4) the scope of the mortgage guarantee;

(5) Other matters that the parties consider necessary to be agreed.

If the mortgage contract does not fully contain the provisions of the preceding paragraph, it may be supplemented.

Article 40 When entering into a mortgage contract, the mortgagee and the mortgagor shall not agree in the contract that the ownership of the mortgaged property shall be transferred to the creditor when the mortgagee is not cleared at the end of the debt performance period.

Article 41 If a party mortgages the property specified in Article 42 of this Law, he shall go through the registration of the mortgaged property, and the mortgage contract shall take effect from the date of registration.

Article 42 The departments that handle mortgage registration are as follows:

(1) If the land use right is mortgaged without a fixed object on the ground, it is the land administration department that issued the land use right certificate;

(2) Mortgages of buildings such as urban real estate or factory buildings of township (town) and village enterprises shall be departments prescribed by local people's governments at or above the county level;

(3) If the forest is mortgaged, it shall be the forest department in charge at or above the county level;

(4) Where the aircraft, ship or vehicle is mortgaged, it shall be the registration department of the means of transport;

(5) Where the equipment and other movable property of the enterprise are mortgaged, the administrative department for industry and commerce where the property is located.

Article 43 If a party mortgages other property, he may voluntarily register the mortgaged property, and the mortgage contract shall take effect from the date of signing.

If the parties have not gone through the registration of the collateral, they shall not confront the third party. Where the parties handle the registration of the mortgaged property, the registration department shall be the notary office where the mortgagor is located.

Article 44 For registration of collateral, the following documents or photocopies shall be provided to the registration department:

(1) the main contract and the mortgage contract;

(2) Certificate of ownership or right of use of the collateral.

Article 45 The materials registered by the registration department shall be allowed to consult, copy or copy.

Section 3 Effect of Mortgage

Article 46 The scope of a mortgage guarantee includes the main creditor's rights and interest, liquidated damages, damages, and the cost of realizing the mortgage. If there is another agreement in the mortgage contract, such agreement shall be followed.

Article 47 If the debt performance period expires and the debtor fails to perform the debt causing the mortgaged property to be seized by the people's court according to law, the mortgagee shall have the right to receive the natural interest separated from the mortgaged property and the mortgager may collect the mortgaged property from the date of seizure Statutory information. If the mortgagee fails to notify the obligor who should pay the statutory interest, the fact of the seizure of the mortgaged property is not as effective as the interest.

The interest in the preceding paragraph shall first be used to cover the cost of collecting interest.

Article 48 If the mortgagor mortgages the leased property, he shall notify the lessee in writing that the original lease contract shall continue to be valid.

Article 49. During the mortgage period, if the mortgagor transfers the registered collateral, it shall notify the mortgagee and inform the transferee that the transfer has been mortgaged; if the mortgagor fails to notify the mortgagee or notify the transferee , The transfer is invalid.

If the price of the transfer of the mortgaged property is significantly lower than its value, the mortgagee may require the mortgagee to provide corresponding guarantees; if the mortgagee fails to provide it, the mortgaged property may not be transferred.

The price obtained by the mortgagor for the transfer of the mortgaged property shall be paid to the mortgagee in advance for the secured creditor's right or a deposit with a third party agreed with the mortgagee. The part exceeding the amount of the creditor's right shall be owned by the mortgagor, and the shortfall shall be settled by the debtor.

Article 50 The mortgage right may not be separated from the creditor's right and transferred alone or as a guarantee for other creditor's rights.

Article 51 Where the conduct of the mortgagor is sufficient to reduce the value of the mortgaged property, the mortgagee has the right to require the mortgagor to stop its conduct. When the value of the collateral decreases, the mortgagee has the right to require the mortgagor to restore the value of the collateral or provide a guarantee equivalent to the reduced value.

If the mortgagor is not at fault in reducing the value of the collateral, the mortgagee can only request a guarantee within the scope of the compensation the mortgagor receives for the damage. The portion of the mortgaged property that has not been reduced shall still be used as a guarantee for the creditor's rights.

Article 52 A mortgage right and its secured creditor's right coexist. If the creditor's right is extinguished, the mortgage right also extinguishes.

Section 4 Realization of Mortgage

Article 53 If the mortgagee has not paid off at the expiry of the debt performance period, he may agree with the mortgagor to obtain a discount on the mortgaged property or to pay the price obtained by auctioning or selling the mortgaged property. The court filed a lawsuit.

After the collateral is discounted or auctioned or sold, the portion of the price that exceeds the amount of the creditor's right shall be owned by the mortgagor, and the shortfall shall be settled by the debtor.

Article 54 Where the same property is mortgaged to two or more creditors, the proceeds from the auction and sale of the mortgaged property shall be paid in accordance with the following provisions:

(1) If the mortgage contract becomes effective upon registration, the mortgage contract shall be settled according to the order of registration of the mortgaged property; if the order is the same, it shall be settled according to the proportion of the debts;

(2) If the mortgage contract is effective from the date of signing, the mortgaged property has been registered, and shall be paid off in accordance with item (1) of this article; if it is not registered, it shall be paid off in the order of the effective date of the contract. pay off. The collateral is registered before the unregistered compensation.

Article 55 After the urban real estate mortgage contract is signed, the newly added houses on the land are not classified as collateral. When the mortgaged real estate needs to be auctioned, the newly added houses on the land can be auctioned together with the mortgaged property, but the mortgagee has no right to receive priority compensation for the proceeds of the auction of the newly added houses.

Where the land use right of the contracted wasteland is mortgaged in accordance with the provisions of this law, or the land use right within the occupancy of the buildings of the township (town) or village enterprise, etc., is mortgaged, after the realization of the mortgage right, it shall not Change collective land ownership and land use.

Article 56 The mortgagee shall have the priority to receive the payment for the state-owned land use right allocated by auction after paying an amount equivalent to the land use right transfer fee payable in accordance with the law.

Article 57 A third party who guarantees the debtor's mortgage shall have the right to recover from the debtor after the mortgagee has realized the mortgage.

Article 58 The right of mortgage shall lapse due to the loss of the mortgaged property. The compensation for the loss shall be used as the mortgaged property.

Section 5 Maximum Mortgage

Article 59 The term "maximum mortgage" as mentioned in this Law refers to the agreement between the mortgagor and the mortgagee, within the limit of the maximum amount of the creditor's right, to use the collateral to guarantee the continuous claims in a certain period of time.

Article 60 A loan contract may be accompanied by a maximum mortgage contract.

A contract signed between a creditor and a debtor for a certain commodity in a continuous period of time may be accompanied by a maximum mortgage contract.

Article 61 The creditor's right of the main contract mortgaged at the maximum amount shall not be transferred.

Article 62 Except for the provisions of this section, the maximum amount of mortgage applies to other provisions of this chapter.

Chapter IV Pledge

Section 1 Pledge of movable property

Article 63 The pledge of movable property as mentioned in this Law means that the debtor or a third party transfers its movable property to the creditor for possession, using the movable property as a security for the creditor's right. When the debtor fails to perform his debts, the creditor has the right to receive preferential compensation in accordance with the provisions of this Law, at the discount of the movable property, or at the auction or sale of the movable property.

The debtor or third party specified in the preceding paragraph shall be the pledgor, the creditor shall be the pledgee, and the movable property transferred shall be the pledged property.

Article 64 The pledgor and the pledgee shall conclude a pledge contract in writing.

The pledge contract takes effect when the pledge is transferred to the pledgee.

Article 65 The pledge contract shall include the following:

(1) the type and amount of the main creditor's right guaranteed;

(2) the time limit for the debtor to perform the debt;

(3) the name, quantity, quality and condition of the pledge;

(4) the scope of the pledge guarantee;

(5) the time of the transfer of the pledged material;

(6) Other matters that the parties consider necessary to be agreed.

If the pledge contract does not fully contain the provisions of the preceding paragraph, it may be supplemented.

Article 66 The pledgor and the pledgee shall not stipulate in the contract that the ownership of the pledged property shall be transferred to the pledgee when the pledgee is not cleared at the end of the debt performance period.

Article 67 The scope of a pledge guarantee includes the main creditor's rights and interest, liquidated damages, damages, pledged storage costs, and the cost of realizing the pledge. If there is another agreement in the pledge contract, the agreement shall be followed.

Article 68 The pledgee has the right to receive the income from the pledge. If there is another agreement in the pledge contract, the agreement shall be followed.

The interest in the preceding paragraph shall first be used to cover the cost of collecting interest.

Article 69 The pledgee has the obligation to properly keep the pledged property. Where the pledged property is lost or damaged due to improper storage, the pledgee shall bear civil liability.

If the pledgee's failure to properly keep the pledge may result in its loss or damage, the pledgor may request the pledgee to deposit the pledge or return the pledge in advance by paying off the debts in advance.

Article 70 If there is a possibility that the pledged property is damaged or its value is significantly reduced, which is enough to endanger the rights of the pledgee, the pledgee may request the pledgee to provide corresponding guarantees. If the pledger does not provide it, the pledgee may auction or sell the pledged property and agree with the pledgor to use the proceeds from the auction or sale to pay off the guaranteed creditor's rights in advance or withdraw to the third party agreed with the pledgor .

Article 71 If the debtor has fulfilled the debt at the expiry of the debt performance period, or the pledgor pays off the guaranteed creditor's right in advance, the pledgee shall return the pledged property.

If the pledgee has not been repaid at the end of the debt performance period, the pledgee may negotiate with the pledgor to discount the pledged goods, or auction or sell the pledged goods according to law.

After the pledged goods are discounted or auctioned or sold, the portion of the price that exceeds the amount of the creditor's rights shall be owned by the pledged person, and the shortfall shall be paid off by the debtor.

Article 72 The third party guaranteeing the debtor's pledge shall have the right to recover the debtor after the pledgee realizes the pledge.

Article 73 The right of pledge shall lapse due to the loss of the pledge. The compensation for the loss shall be used as pledged property.

Article 74 The pledge right and the creditor's right guaranteed by it coexist. When the creditor's right is extinguished, the pledged right is also extinguished.

Section 2 Pledge of Rights

Article 75 The following rights may be pledged:

(1) drafts, checks, promissory notes, bonds, deposit notes, warehouse receipts, bills of lading;

(2) Shares and stocks that can be transferred according to law;

(3) Exclusive rights to trademarks, patent rights, and property rights in copyright that can be transferred according to law;

(4) Other rights that can be pledged according to law.

Article 76 Where a bill of exchange, check, promissory note, bond, deposit certificate, warehouse receipt, bill of lading is pledged, the right certificate shall be delivered to the pledgee within the time limit agreed in the contract. The pledge contract is effective from the date of delivery of the right certificate.

Article 77 Where a bill of exchange, check, cashier order, promissory note, bond, deposit certificate, warehouse receipt, bill of lading is stated on the date of redemption or delivery, the bill of exchange, check, promissory note, bond, deposit certificate, warehouse receipt, bill of lading is cashed Or if the date of delivery precedes the debt fulfillment period, the pledgee may cash or withdraw the goods before the expiry of the debt fulfillment period, and agree with the pledgor to use the cashed amount or the extracted goods for the early settlement of the guaranteed creditor's rights Third party deposit as agreed by the pledged person.

Article 78 In the case of pledge of stocks that can be transferred according to law, the pledgor and the pledgee shall conclude a written contract and go through the pledge registration with the securities registration agency. The pledge contract takes effect from the date of registration.

After the stock is pledged, it cannot be transferred, but it can be transferred after the pledgor and the pledgee negotiate and agree. The price obtained by the pledgor for the transfer of shares shall be paid to the pledgee in advance to guarantee the creditor's rights or be deposited with a third party agreed with the pledgee.

In the case of pledge of shares of a limited liability company, the relevant provisions of the Company Law on the transfer of shares shall apply. The pledge contract takes effect from the date when the pledge of shares is recorded in the register of shareholders.

Article 79 Where the exclusive right to use a trademark, the property right in the patent right or the copyright is transferable in accordance with law, the pledgor and the pledgee shall conclude a written contract and go through the pledge registration with their management department. The pledge contract takes effect from the date of registration.

Article 80 After the rights provided in Article 79 of this law have been pledged, the pledgor shall not transfer or license the use of others, but may transfer or license the use of others after the pledgor negotiates with the pledgee. The transfer fee and license fee obtained by the pledgor shall be paid in advance to the pledgee for the secured creditor's rights or withdrawn by a third party agreed with the pledgee.

Article 81 In addition to the provisions of this section, the provisions of section 1 of this chapter shall apply.

Chapter V Lien

Article 82 The lien referred to in this law means that in accordance with the provisions of Article 84 of this law, the creditor shall occupy the debtor's movable property as stipulated in the contract, and the debtor shall have the right to comply with this law if the debtor does not perform the debt within the time agreed in the contract It is stipulated that the property shall be retained, and the property shall be preferentially compensated at the discount of the property or at the price of auctioning or selling the property.

Article 83 The scope of the lien security includes the main creditor's rights and interest, liquidated damages, damages, liens storage costs, and the cost of realizing the lien.

Article 84 The creditor has a lien if the debtor fails to perform the debt due to the creditor's right arising from the storage contract, the transportation contract, or the processing contract.

For other contracts that can be held by law, the provisions of the preceding paragraph shall apply.

The parties may agree in the contract what must not be kept.

Article 85 Where the lien property is separable, the value of the lien shall be equal to the amount of the debt.

Article 86 The lien holder shall have the obligation to properly keep the lien. Where the lien is lost or damaged due to improper storage, the lien holder shall bear civil liability.

Article 87 The creditor and the debtor shall agree in the contract that after the creditor retains the property, the debtor shall perform the debt within a period of not less than two months. If the creditor and the debtor do not agree in the contract, after the creditor retains the debtor's property, he shall determine a period of more than two months and notify the debtor to perform the debt within that period.

If the debtor fails to perform within the time limit, the creditor may negotiate with the debtor to discount the lien, or may auction or sell the lien in accordance with law.

After the lien is discounted or auctioned or sold, the debtor's portion of the price exceeding the amount of the creditor's right shall be owned by the debtor, and the shortfall shall be paid off by the debtor.

Article 88 The lien is extinguished for the following reasons:

(1) The creditor's rights have been destroyed;

(2) The debtor provides additional guarantee and is accepted by the creditor.

Chapter VI Deposit

Article 89 The parties may agree that one party shall pay a deposit to the other party as security for the debt. After the debtor performs its debt, the deposit shall be offset against the price or recovered. If the party that pays the deposit fails to perform the agreed debt, it has no right to demand the return of the deposit; if the party that receives the deposit fails to perform the agreed debt, the deposit shall be doubled.

Article 90 The deposit shall be agreed in writing. The parties shall agree on the time limit for the payment of the deposit in the deposit contract. The deposit contract takes effect from the date of the actual delivery of the deposit.

Article 91 The amount of the deposit shall be agreed upon by the parties, but shall not exceed 20% of the subject contract amount.

Chapter VII Supplementary Provisions

Article 92 The term "immovable property" as used in this Law refers to land, houses, forests, and other fixed objects on the land.

The movable property referred to in this law refers to things other than real property.

Article 93 The guarantee contract, mortgage contract, pledge contract, and deposit contract referred to in this law may be individually written contracts, including letters, faxes, etc. of a guarantee nature between the parties, or the guarantee in the main contract Terms.

Article 94 The discount or sale of mortgaged property, pledged property or lien shall refer to market prices.

Article 95. Where laws such as the Maritime Law have special provisions on guarantees, such provisions shall be followed.

Article 96 This Law shall enter into force on October 1, 1995.