What Is a Guarantee Form?

The provision of guarantees in violation of regulations refers to the system of urging debtors to fulfill their debts by using the credit of a debtor or a third party or specific property to ensure that specific creditors realize their claims.

Violation of guarantees means that the law

Guarantee for

1. The equal status of the parties in the equal guarantee relationship and the rights and obligations in the guarantee legal relationship are the result of equal negotiation between the two parties. 2. Voluntary (optional) China

1. According to the law, there are five ways to guarantee, namely

   1. Scope of guarantee: main claims and interest,

      1. In a mortgage contract, the registration of the mortgaged property shall take effect from the date of registration of the mortgaged property, and the voluntary registration of mortgaged property shall take effect from the date of signing the contract.

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

      3. The deposit contract takes effect from the date of the actual delivery of the deposit.

      I. Reason

      1. Subject violates the law: the party is a person with limited or limited capacity; the guarantor's qualification is illegal; other circumstances provided by law.

      2. Object illegal: Mortgage of property is prohibited by the guarantee law; mortgage or pledge of property is stolen or lost.

      3. Illegal content: For example, if a creditor uses fraud, coercion, or danger to make a person defraud the guarantee against the true meaning, it is invalid.

      Consequences

      1. Invalid guarantee contract due to invalid main contract:

         1.1 The guarantor shall be exempt from liability when the guarantor is not at fault;

         1.2 When the guarantor is at fault, his liability shall not exceed one third of the debtor's failure to pay.

      2. The main contract is valid and the guarantee contract is invalid:

         2.1 When the creditor has no fault, the debtor and the guarantor bear joint and several liabilities;

         2.2 When both the creditor and the guarantor are at fault,

         The content of creditor's rights guarantee is the right and obligation relationship composed of the security right and the guarantee obligation. The creditor's security right also exhibits different attributes depending on the nature of the security of the person and the security of the property. In a person's guarantee or guarantee, a security right is a claim of claim type and belongs to the scope of a claim. In a security of property, it is a priority right of repayment, so it is also called a security right. There is a big difference in effectiveness between the two. Corresponding to this, the obligation of the guarantee obligor is actually a debt in the person's guarantee, and a real right burden in the property guarantee.

         The socio-economic role of security of claims

         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, such agreement shall be followed.

         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.