What is Secured Debt?

Guaranteed debt refers to the guarantee responsibility that the guarantor should bear under the guarantee contract, that is, when the debtor is unable to perform the main debt, the guarantor will perform it on its behalf. The guarantor's guaranteed debt has two types: one is that the guarantor is responsible for performing the performance when the main debt cannot be performed; the other is that the guarantor and the debtor are jointly and severally liable when the main debt is not performing. The main debt guaranteed by the guarantee debt of the previous nature can only be a debt that can replace performance. For a debt that must be performed by the debtor in person, a guarantee responsibility for guarantee performance cannot be established. Guaranteed debt is a subordinated debt of the main debt. Matters arising between the principal debtor and the creditor in respect of the principal debt are, in principle, effective and guaranteed debt, ie, they have absolute effect. ^[1]