What Is Collateral Security?
Mortgage guarantee means that the debtor or a third party does not transfer the possession of a particular thing and uses the property as a guarantee of the creditor's right. When the debtor fails to perform the debt, the creditor has the right to discount the property or auction or sell it in accordance with the provisions of the guarantee law Payment of the property is given priority.
Mortgage guarantee
- Chinese name
- Mortgage guarantee
- Foreign name
- Mortgage guarantee
- Main body
- Debtor or third party
- Features
- Does not transfer possession of a particular thing
- Mortgage guarantee means that the debtor or a third party does not transfer the possession of a particular thing and uses the property as a guarantee of the creditor's right. When the debtor fails to perform the debt, the creditor has the right to discount the property or auction or sell it in accordance with the provisions of the guarantee law. Payment of the property is given priority.
- It can be seen that the characteristics of mortgage guarantees are:
- First, the mortgagor can be a third party or the debtor himself. This is different from a guarantee, in which the debtor cannot act as the guarantor.
- Secondly, the collateral is movable and it can also be real. This is different from pledge, which can only be movable property.
- Third, the mortgagor does not transfer the possession of the collateral, and the mortgagor can continue to possess and use the collateral. This is also different from pledge, which must be transferred to the pledgee.
- Fourth, the mortgage guarantee is realized by the mortgagee (creditor) exercising the right of priority. The right of priority is the core of the mortgage.
- Fifth, the exercise of the mortgage must be premised on the debtor's non-performance.