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

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.
Chinese name
Mortgage guarantee
Foreign name
Mortgage guarantee
Main body
Debtor or third party
Features
Does not transfer possession of a particular thing

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.

IN OTHER LANGUAGES

Was this article helpful? Thanks for the feedback Thanks for the feedback

How can we help? How can we help?