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Laws of the People's Republic of China |
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| Category | OBLIGATORY RIGHT | Organ of Promulgation | The Standing Committee of the National People's Congress | Status of Effect | In Force |
| Date of Promulgation | 1995-06-30 | Effective Date | 1995-10-01 |
|
Guarantee Law of the People's Republic of China |
|---|
Chapter I General Provisions
Chapter II Guaranty
Section 1 Guaranty and Guarantor
Section 2 Contract of Guaranty and Mode of Guaranty
Section 3 Liability of Guaranty
Chapter III Mortgage
Section 1 Mortgage and Gage
Section 2 Contract of Mortgage and Mortgage Registration
Section 3 Effect of Mortgage
Section 4 Realization of Mortgage
Section 5 Mortgage of Maximum Amount
Chapter IV Pledg
Section 1 Pledge of Movables
Section 2 Pledge of Rights
Chapter V Lien
Chapter VI Deposit
Chapter VII Supplementary Provisions Article 1 This Law is formulated for the purpose of promoting Article 2 In such economic activities as loans, sales, goods The modes of guarantee provided for in this Law shall be guaranty, Article 3 In activities of guarantee, the principle of equality, Article 4 When a third party offers the creditor a guarantee on The provisions on guarantee of this Law shall be applicable Article 5 A guarantee contract shall be an accessory contract to Where a guarantee contract is affirmed to be invalid, the Section 1 Guaranty and Guarantor Article 6 In this Law, guaranty means that the guarantor and the Article 7 A guarantor may be a legal person, other organization Article 8 The state administrative departments shall not be a Article 9 Such institutions and social organizations as schools, Article 10 A branch or functional department of an enterprise as If a branch of an enterprise as legal person has been delegated in Article 11 No organization or individual may oblige enterprises Article 12 Where there are two or more guarantors for the same Section 2 Guaranty Contract and Guaranty Mode Article 13 The guarantor and creditor shall enter into a Article 14 The guarantor and creditor may enter into a guaranty Article 15 A guaranty contract shall contain the following 1. the categories and amount of a master obligatory right 2. the time limitation to perform the debt by the debtor; 3. the guaranty mode; 4. the scope guaranteed by the guaranty; 5. the time period of guaranty; and 6. other items which the two parties consider necessary to agree. If a guaranty contract has the contents prescribed in the Article 16 The guaranty mode contains: 1. the general guaranty; and 2. the joint liability guaranty. Article 17 That the parties in a guaranty contract agree that, The guarantor of a general guaranty may, without trial or When there is any one of the following circumstances, the 1. the address of the debtor has changed, so that it becomes a 2. the people's court accepting a debtor's bankruptcy case, orders 3. the guarantor abandons the right described in the proceeding Article 18 That the parties in a guaranty contract agree that If the debtor of a joint liability guaranty cannot perform the Article 19 If no agreement or the agreement is not clear on the Article 20 The guarantor of a general guaranty and joint The counterplead right means that the right of, when the creditor Section 3 Guaranty Liability Article 21 The guaranteed scope of a guaranty concludes the If no agreement or the agreement is not clear on the guaranteed Article 22 During the time period of guaranty, where the Article 23 During the time period of guaranty, if the creditor Article 24 If the creditor and debtor agree to change the master Article 25 If no agreement on guaranty period between the During the guaranty period agreed in the contract or described in Article 26 If no agreement on a guaranty period between the During the guaranty period agreed in the contract or described in Article 27 The guarantor shall make a guaranty on a credit Article 28 Where there are both a guaranty and a guarantee of If the creditor abandons the guarantee of real right, the Article 29 Where a branch of an enterprise as a legal person Article 30 If there is any one of the following circumstances, 1. the parties of the master contract collude to defraud the 2. the creditor of the master contract take means of fraud or Article 31 After the guarantor has borne the guaranty liability, Article 32 After the people's court accepts a debtor's bankruptcy Section 1 Mortgage and Gage Article 33 The mortgage prescribed in this Law, means a The debtor or third party prescribed in the proceeding paragraph Article 34 The following properties may be mortgaged: 1. the house and other land fixtures owned by the mortgagor; 2. the machine, transportation means and other property owned by 3. the state-owned right to the use of land, house and other land 4. the state-owned machine, transportation means and other 5. the right to the use of land on the unreclaimed land such as 6. other property which may be mortgaged in accordance with the The mortgagor may mortgage the properties listed in the Article 35 The obligatory right guaranteed by the mortgagor shall After the property is mortgaged, the surplus part that the said Article 36 If the house upon the state-owned land obtained If the right to the use of state-owned land obtained by way of The right to the use of land of enterprises of a township (town) Article 37 the following properties shall not be mortgaged: 1. the ownership of land; 2. the ownership of the lands owned by collectives such as 3. the facilities for education, the facilities for public health 4. the properties whose ownership or right to use is uncertain or 5. the properties sealed up, distrained or regulated; or 6. other properties which shall not be mortgaged pursuant to law. Section 2 Mortgage Contract and Gage Registration Article 38 The mortgagor and the mortgagee shall enter into a Article 39 A mortgage contract shall contain the following 1. the categories and amount of master obligatory right 2. the time limitation to perform the debt by the debtor; 3. the name, quantity, quality, situation, address, ownership or 4. the extent guaranteed by the mortgage; and 5. other items the parties consider necessary to agree. If a mortgage contract has the contents prescribed in the Article 40 When entering into a mortgage contract, the mortgagor Article 41 Where the parties take the properties prescribed in Article 42 The departments handling the gage registration are as 1. in case that the right to the use of land without fixtures upon 2. in case that the city real estates or the building of the 3. in case that the woods are to be mortgaged, it shall be the 4. in case that aircraft, vessels or vehicles are to be mortgaged, 5. in case that the equipment or other movables of a enterprise Article 43 Where the party takes other properties to mortgage, The party who has not handled the gage registration shall not be Article 44 When the gage registration is to be handled, the 1. the master contract and the mortgage contract; and 2. the certificate of ownership of or right to the use of the Article 45 The information registered by the registration Section 3 Effect of Mortgage Article 46 Within the guaranteed scope of a mortgage shall Article 47 At the date of expiration of the debt performance The fruits of the proceeding paragraph shall eliminate in advance Article 48 If the mortgagor wants to mortgage a property that Article 49 During the period of mortgage, if the mortgagor If the value amount of the gage assigned is obviously lower than The value amount from assigning the gage by the mortgagor shall Article 50 The mortgage right shall not be separated from the Article 51 If the behavior of the mortgagor causes the value of If the mortgagor has no fault for the decrease of the value of the Article 52 The mortgage shall exist simultaneously with the Section 4 Realization of Mortgage Article 53 At the date of expiration of the debt performance After the gage is set off, auctioned or sold, the part of the Article 54 If there are two or more creditors who have a mortgage 1. where the mortgage contract is effective through registration, 2. where the mortgage contract is effective as the date of Article 55 After the signing of the city real estates mortgage Where the right to the use of land of the unreclaimed land Article 56 The value amount obtained from the auction of the Article 57 The third party who offers guarantee of a mortgage on Article 58 The mortgage right extinguishes with the extinction Section 5 Mortgage of the Maximum Amount Article 59 The mortgage of the maximum amount prescribed in this Article 60 A loan contract may be attached with a mortgage The contract signed by the creditor and debtor on a certain item Article 61 The obligatory right of the master contract with the Article 62 The mortgage of maximum amount shall, besides that it Section 1 Pledge of Movables Article 63 The pledge of movables described in this Law, means The debtor or the third party prescribed in the proceeding Article 64 The pledgor and the pledgee shall enter into a pledge A pledge contract shall be effective as the date of remitting the Article 65 A pledge contract shall contain the following 1. the categories and amount of the master obligation right 2. the time period to perform the debt by the debtor; 3. the name, quantity, quality and situation of the pledgings; 4. the extent guaranteed by the pledge; 5. the time to deliver the pledgings; and 6. other items which the parties consider necessary to agree. If a pledge contract has the contents incompletely prescribed in Article 66 The pledgor and the pledgee shall not agree that, Article 67 The guaranteed scope of a pledge shall conclude the Article 68 The pledgee shall be entitled to have right to collect The fruits of the proceeding paragraph shall eliminate in advance Article 69 The pledgee shall bear the obligation to keep the If the pledgee cannot keep the pledgings properly which probably Article 70 If there is a probability of damage of or obvious Article 71 At the date of expiration of the debt performance At the date of expiration of the debt performance time limitation After the pledgings are kept to offset or auctioned, sold, the Article 72 The third party who offers the guarantee of a pledge Article 73 The right of the pledge extinguishes with the Article 74 The pledge shall be existed simultaneously with the Section 2 Pledge of Rights Article 75 The following rights may be pledged: 1. a bill of exchange, check, promissory note, bond, deposit 2. the share or share paper which may be assigned according to the 3. the property right of the exclusive right to use trademark, 4. other rights which may be pledged according to the law; Article 76 Where the bill of exchange, check, promissory note, Article 77 Where the bill of exchange, check, promissory note, Article 78 Where the share paper that may be assigned according After the share paper is pledged, it shall not be assigned, Where the shares of a limited liability corporation are to be Article 79 Where the property right of the exclusive right to Article 80 After the right prescribed in Article 79 is pledged, Article 81 The pledge of rights shall, besides that it is applied Article 82 The lien prescribed in this Law means that, according Article 83 The guaranteed scope of a lien shall conclude the Article 84 As for the obligatory right occurred with the Other contracts in which a lien may be agreed prescribed by the The parties may agree in the contract the subject that shall not Article 85 If the property with a lien is separable, the value of Article 86 The lienor shall bear the obligation to keep the Article 87 The creditor and the debtor shall agree in the If the debtor does not perform the debt yet at the date of After the subject with a lien is kept to offset or auctioned, Article 88 The right of lien extinguishes, 1. if the obligatory right extinguishes; or 2. if the debtor offers guarantee otherwise and it is accepted by Article 89 The parties may agree that one party will pay the Article 90 The deposit shall be agreed in writing. The parties Article 91 The amount of the deposit shall be determined by the Article 92 The real estate prescribed in this Law indicates the The movables prescribed in this Law indicates the subjects except Article 93 The guaranty contract, mortgage contract, pledge Article 94 When the gage, pledgings and subject with a lien is Article 95 If any law such as the Maritime Code has specific Article 96 This Law shall become effective on the date of
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Chapter I General Provisions
the capital flow and commodity circulation, safeguarding the
realization of obligatory right, and developing the socialist market
economy.
freight and hire of processing work, etc., where the creditor needs to
safeguard the realization of his obligatory right by the way of
guarantee, a guarantee may be established in accordance with the
provisions of this Law.
mortgage, pledge, lien and deposit.
voluntariness, fairness and good faith shall be complied with.
behalf of the debtor, he may require the debtor to offer a counter-
guarantee.
to counter-guarantee.
the master contract. Where the master contract is invalid, the
guarantee contract shall also be invalid. Where an agreement is
otherwise reached in the guarantee contract, that agreement shall
prevail.
debtor, surety or creditor is in fault, they shall respectively bear
the relevant civil liability according to their own faults.
Chapter II Guaranty
creditor agree that, when the debtor fails to perform his debt, the
guarantor will perform the debt or bear the liability in accordance
with the agreement.
or a citizen who has ability to discharge of debts on behalf of
others.
guarantor, unless they, with the approval of the State Council,
transfer loans for the purpose of using the loans of foreign
governments or international organizations.
kindergartens and hospitals, etc., which are established for the
purpose of public interest shall not be a guarantor.
legal person shall not be a guarantor.
writing by the legal person, it may offer the guaranty within the
delegation extent.
or financial institutions such as a bank to offer guaranty for others;
enterprises and financial institutions such as a bank shall have the
right to refuse to offer guaranty for others when they are obliged to.
debt, the guarantors shall, according to their own guaranty shares
agreed in the guaranty contract, bear the guaranty liability. In case
of no agreement on the guaranty shares, the guarantors shall bear the
joint liability. Thus the creditor may demand any of the guarantors to
bear the entire guaranty liability, and any of the guarantors shall
bear the obligation to guarantee the entire realization of the
obligatory right. The guarantor who has borne the guaranty liability
shall be entitled to claim repayment from the debtor, or to demand
other guarantors bearing the joint liability to satisfy him their
shares that they shall bear.
guaranty contract in written form.
contract respectively as for a single master contract, and may also,
within the maximum obligatory right amount as for a loan contract
occurred continuously during a certain period or a commodity trade
contract, enter into a guaranty contract.
contents:
guaranteed;
proceeding paragraph incomplete, it may be supplemented.
when the debtor cannot perform the debt, the guaranty liability is to
be borne by the guarantor, is the general guaranty.
arbitration on the disputes of a master contract, and before the debt
cannot be performed yet with compulsory enforcement on the debtors'
property according to the law, refuse to bear the guaranty liability
for the creditor.
guarantor shall not exercise the right prescribed in the proceeding
paragraph:
major difficulty for the creditor to demand him to perform the debt;
suspension of execution procedure; or
paragraph in written form.
the guarantor and debtor bear the joint liability on a debt, is the
joint liability guaranty.
debt at the date of expiration of the debt performance time limitation
prescribed in the master contract, the creditor may demand the debtor
to perform the debt, and may also demand the guarantor to bear the
guaranty liability within the extent of guaranty.
guaranty mode by the parties, the guaranty liability shall be borne
according to the joint liability guaranty.
liability guaranty shall be entitled to have the counterplead right of
the debtor. If the debtor abandons his counterplead right, the
guarantor shall still be entitled to have right to counterplead.
exercises his obligatory right, the debtor according to legal reasons
executing the petition right against the creditor.
master obligatory right and its interest, contractual fine, damage
compensation and expense of credit realization. If there is an
agreement otherwise in the guaranty contract, it shall be complied
with.
scope of a guaranty by the parties, the guarantor shall bear the
liability to the entire debt.
creditor assigns the master obligatory right to a third party
according to the law, the guarantor continues to bear the guaranty
liability within the original guaranteed scope of the guaranty. If
there is an agreement otherwise in the guaranty contract, it shall
be complied with.
wants to permit the debtor to assign the debt, he shall get the
written consent from the guarantor, the guarantor bears no guaranty
liability on the debt assigned without his consent.
contract, they shall get the written consent from the guarantor,
without this written consent, the guarantor bears no longer guaranty
liability. If there is an agreement otherwise in the guaranty
contract, it shall be complied with.
guarantor and creditor of a general guaranty, the guaranty period
shall be 6 months from the date of expiration of the master debt
performance time limitation.
the proceeding paragraph, if the creditor has not filed a case against
the debtor or applied for the arbitration, the guarantor shall be
exempted from the guaranty liability; if the creditor has filed a case or
applied for the arbitration, the guaranty period shall be applied to the
provisions on the discontinuance of limitation of action.
guarantor and creditor of a joint liability guaranty, the creditor
shall be entitled to have the right within 6 months from the date of
expiration of the master debt performance time limitation to demand
the guarantor to bear the guaranty liability.
the proceeding paragraph, if the creditor has not demanded the
guarantor to bear guaranty liability, the guarantor shall be exempted
from the guaranty liability.
occurred continuously according to the provisions of Article 14 in
this law, if no agreement on guaranty time period, the guarantor may
at all times inform the creditor in written form to terminate the
guaranty contract, however the guarantor shall, as for the credit
occurred before having informed the creditor, bear guaranty liability.
real right on a same obligatory right, the guarantor shall bear the
guaranty liability on the obligatory right except the guarantee of
real right.
guarantor shall, within the scope of right abandoned by the creditor,
be exempted from the guaranty liability.
enters into a guaranty contract with the creditor without written
delegation from the enterprise as legal person or exceeding the extent
of delegation, this contract shall be invalid or the part exceeding
the extent of delegation shall be invalid; if the creditor and the
enterprise as legal person has default, they shall bear the relevant
civil liability according to their fault respectively; if the creditor
has no default, the civil liability shall be borne by the enterprise
as legal person.
the guarantor shall not bear the civil liability:
guarantor to offer a guaranty; or
coercion to force the guarantor to offer a guaranty against his true
intention.
he shall be entitled to claim repayment from the debtor.
case, if the creditor does not declare his obligatory rights, the
guarantor may take part in the bankrupted property distribution,
exercise the right to claim repayment in advance.
Chapter III Mortgage
guarantee that a debtor or a third party does not transfer the
possession of the property listed in Article 34 in this Law, make the
said property as obligatory right. When the debtor does not perform
the debt, the creditor shall be entitled to have right to keep the
said property to offset the debt or have priority in satisfying his
claim out of proceeds from the auction, sale of the said property
pursuant to the provisions of this Law.
shall be the mortgagor, the creditor shall be the mortgagee, the
property offered to guarantee shall be the gage.
the mortgagor;
fixtures which the mortgagor is entitled to dispose of pursuant to the
law;
property which the mortgagor is entitled to dispose of pursuant to the
law;
unreclaimed mountains, unreclaimed valleys, unclaimed hills or
unreclaimed beaches which is contracted for management by the
mortgagor in accordance with law and is agreed to mortgage by the
contractee; or
law.
proceeding paragraph all together.
not exceed the value of the gage.
property is more than the obligatory right guaranteed, may be
mortgaged once more, but shall not exceed the surplus part.
according to the law is to be mortgaged, the right to the use of the
state-owned land within the scope the house occupies shall be
mortgaged at the same time.
transfer according to the law, when mortgaged the house upon the said
state-owned land shall be mortgaged at the same time.
or village shall not be mortgaged separately. If the buildings of
enterprises of township (town) or village such as a plant is to be
mortgaged, the right to the use of the land within the scope it
occupies shall be mortgaged at the same time.
cultivated land, house sites, private plots of cropland and hilly land
shall not be mortgaged, except that prescribed in item 5 of Article
34, paragraph 3 of Article 36 of this Law;
and medicine and other facilities for social benefit of the
institutions or social units for purpose of public interest such as
schools, kindergartens or hospitals;
in dispute;
mortgage contract in written form.
contents:
guaranteed;
right to the use of the gage;
proceeding paragraph incomplete, it may be supplemented.
and the mortgagee shall not agree that, when the mortgagee is not
satisfied at date of expiration of the time limitation for the debt
performance, the ownership of the gage is to be transferred to the
creditor.
Article 42 of this Law to mortgage, he shall go through the gage
registration, the mortgage contract shall be effective as the date of
registration.
follows:
the land is to be mortgaged, it shall be the land administration
departments which upon verification issue certificates for the right
to the use of land;
township (town) or village enterprises such as a plant is to be
mortgaged, it shall be the departments prescribed by the local
people's governments at and above the county level;
forestry administration departments at and above the county level;
it shall be the registration departments for transportation means; or
are to be mortgaged, it shall be the administrations of industry and
commerce where the properties are located.
he may go through the gage registration on a voluntary basis, the
mortgage contract shall be effective as the date of registration.
opposed to a third party. If the party goes through the gage
registration, the registration department is to be the notary
department of the area where the mortgagor is located.
following documents or their copies shall be produced to the
registration department:
gage.
department shall be allowed to inquire and read, copy by hand and
copy.
be the master obligatory and its interest, contractual fine, damage
compensation and expense of realization of mortgage. If there is an
agreement otherwise in the mortgage contract, it shall be complied
with.
period, if the debtor has not performed the debt so that the gage has
been distrained by the people's court, from the date of distraining
the mortgagee shall be entitled to collect the natural fruits
separated from the gage and the legal fruits that the mortgagee may
collect on the gage. If the mortgagee has not informed the fact of the
distraining of the gage to the obligatory person who shall satisfy the
claim out of proceeds for the legal fruits, the effect of mortgage shall
not extend to the said fruits.
the expense of collecting the fruits.
has been leased, he shall notify the leasee in writing, and the
original lease contract continues to be effective.
assigns the gage registered, he shall inform the mortgagee and also
notify the assignee of the situation that the grant has been
mortgaged; if the mortgagor does not inform the mortgagee or notify
the assignee, the assigning behavior shall be invalid.
its value, the mortgagee may demand the mortgagor to offer the
equivalent guarantee; if the mortgagor does not offer, the gage shall
not be assigned.
satisfy in advance the mortgagee for the claim out of the proceeds on
the obligatory right guaranteed or be deposited to the third party he
agreed with the mortgagee. The part exceeding the amount of the
obligatory right, shall be owned by the mortgagor, while the short
part shall be satisfied by the debtor.
obligatory right so that it is assigned solely or as a guarantee of
other obligatory rights.
the gage to decrease, the mortgagee shall be entitled to have right to
demand the mortgagor to stop his behavior. When the value of the gage
decreases, the mortgagee shall be entitled to have right to demand the
mortgagor to restore the value of the gage, or offer a guarantee
equivalent to the value decreased.
gage the mortgagee shall demand the mortgagee to be offered only
within the extent of compensation for the damage obtained by the
mortgagor. The part of the gage of which the value does not decrease,
shall still be the guarantee of the obligatory right.
obligatory right it guarantees, where the obligatory right is extinct,
the mortgage shall be extinct as well.
period if the mortgagee has not been satisfied with the claim out of
proceeds, he may make an agreement with the mortgagor to keep the said
property to offset the gage or satisfies his claim out of proceeds
from the auction, sale of the said gage; if failing to make an
agreement, the mortgagor may file a case to the People's Court.
value amount exceeding the amount of the obligatory right shall be
owned by the mortgagor, the short part shall be satisfied by the
debtor.
on the same property, the value amount obtained from the auction, sale
of the gage shall be satisfied pursuant to the following provisions:
it shall be satisfied in the registration sequence of the gage; if
equal in sequence, then it shall be satisfied according to the
proportion of the obligatory right; or
signing, and the said gage has been registered, it shall be satisfied
according to the item 1 of this Article; if the gage has not
registered, it shall be satisfied in the sequence of the effective
date of the contracts, and if equal in sequence, it shall be satisfied
according to the proportion of the obligatory right. The registered
gage has priority to the unregistered gage.
contract, the houses built lately upon the land shall not belong to
the gage. When the said mortgaged real estates is needed to be
auctioned, the lately built houses upon the land may be auctioned
together with the gage, but as for the amount from the auction of the
lately built houses, the mortgagee shall not be entitled to have
priority in satisfying the claim out of proceeds.
contracted for management according to this Law is to be mortgaged, or
the right to the use of the land within the extent occupied by the
buildings of the township (town) or village enterprises such as a
plant is to be mortgaged, after the realization of mortgage, the
collective ownership and purpose of the land shall not be changed
without the legal procedure is gone through.
right to the use of the stated-owned land appropriated, after paying
the amount equivalent to the transfer fee of the right to the use of
land which shall be paid, the mortgagee shall be entitled to have
right in priority for the claim out of proceeds.
behalf of the debtor, after the realization of the mortgage by the
mortgagee, shall be entitled to have right to claim repayment from the
debtor.
of the gage. The compensation for the extinction shall be as the
mortgaged property.
Law, means that the mortgagor and the mortgagee agree, within the
extent of maximum amount of the obligatory right, to take the gage as
the guarantee of the obligatory right occurred continuously during a
certain period.
contract of maximum amount.
commodity with which the trade occurs continuously during a certain
period, may be attached with a mortgage contract of maximum amount.
mortgage of maximum amount shall not be assigned.
is applied to the provisions of this section, be applied to other
provisions of this Chapter.
Chapter IV Pledge
that the debtor or the party delivers his movables to the creditor for
possession, and takes the said movables as the guarantee of the
obligatory right. When the debtor does not perform the debt, the
creditor shall be entitled to have right to keep the said movables to
offset or have priority in satisfying in the claim out of proceeds from
the value amount of the auction or sale of the said movables.
paragraph shall be a pledgor, the creditor shall be a pledgee, the
movables delivered shall be the pledgings.
contract in writing.
pledgings to the pledgee.
contents:
guaranteed;
the proceeding paragraph, it may be supplemented.
when the pledgee is not satisfied at date of expiration of the time
limitation for the debt performance, the ownership of the pledgings is
to be transferred to the pledgee.
master obligatory right and its interest, contractual fine, damage
compensation, expense for keeping the pledgings and expense for
realization of pledge. If there is an agreement otherwise in the pledge
contract, it shall be complied with.
the fruits produced by the pledgings. If there is an agreement
otherwise in the pledge contract, it shall be complied with.
the expense of collecting the fruits.
pledgings properly. If he does not keep the pledgings properly so that
the pledgings are extinct or damaged, the pledgee shall bear the civil
liability.
cause the extinction or damage of the pledgings, the pledgor may
demand the pledgee to have the pledgings to be deposited, or demand to
satisfy the obligatory right before the date of expiration in order that
the pledgings can be returned.
deduction of the value of the pledgings that is enough to hurt the
rights of the pledgee, the pledgee may demand the pledgor to offer the
relevant guarantee. If the pledgor does not offer the guarantee, the
pledgee may auction or sell the pledgings, and make an agreement with
the pledgor that the value amount obtained from the auction or sale is
used to satisfy the obligatory right guaranteed before the date of
expiration or to be deposited to the third party whom he agrees with the
pledgor.
time limitation if the debtor has performed the debt, or the pledgor
has satisfied the obligatory right guaranteed before the date of
expiration, the pledgee shall return the pledgings.
if the pledgee has not been satisfied, he may make an agreement with
the pledgor to keep the pledgings to offset, or to auction, sell the
pledgings.
part that the value amount exceeds the amount of the obligatory right
shall be owned by the pledgor, the short part shall be satisfied by
the debtor.
on behalf of the debtor shall, after the realization of the pledge by
the pledgee, be entitled to have right to claim repayment from the
debtor.
extinction of the pledgings. The compensation for the extinction
shall be as the pledged property.
obligatory right it guarantees, where the obligatory right is extinct,
the pledge is extinct as well.
receipt, bill of lading or warehouse receipt;
law;
patent right, copyright which may be assigned according to the law; or
bond, deposit receipt, bill of lading or warehouse receipt is to be
pledged, the right voucher shall be delivered to the pledgee within
the time limitation agreed in the contract. The pledge contract shall
be effective from the date of delivery of the right voucher.
bond, deposit receipt, bill of lading or warehouse receipt with clear
record of the date of cashing or delivery of the goods is to be
pledged, if the date of cashing or delivery of the goods is before
expiration of the debt performance time period, the pledgee may make a
cashing or delivery of the goods before the date of expiration of the
debt performance time period, and make an agreement with the pledgor that
the value amount cashed or the goods delivered is to be used to satisfy
the obligatory right guaranteed before the date of expiration or to be
deposited to the third party he agrees with the pledgee.
to the law is to be pledged, the pledgor and the pledgee shall enter
into a written contract, and go through the pledge registration to the
security registration institution. The pledge contract shall be effective
as the date of registration.
however it may be assigned with the agreement between the pledgor and
the pledgee. The value amount obtained from the assignment of the
shares by the pledgor shall be used to satisfy the pledgee the obligatory
right guaranteed before the date of expiration or to be deposited to the
third party he agrees with the pledgee.
pledged, it shall be applied to the concerned provisions of the
Corporation Law on the assignment of shares. The pledge contract shall
be effective as the date of recording the pledge of the shares in the
shareholders' name list.
use trademark, patent right or copyright which may be assigned
according to the law is to be pledged, the pledgor and the pledgee
shall enter into a written contract, and go through the pledge
registration to its administration department. The pledge contract
shall be effective as of the date of registration.
the pledgor shall not assign or permit others to use them, however it
may be assigned with the agreement between the pledgor and the
pledgee. The assignment fee, permission fee obtained by the pledgor
shall be used to satisfy the obligatory right of the pledgee guaranteed
before the date of expiration or to be deposited to the third party he
agrees with the pledgee.
to the provisions of this section, be applied to other provisions of
Section 1 in this Chapter.
Chapter V Lien
to the provisions of Article 84 in this Law, the creditor possess the
property of the debtor according to the agreement of the contract, if
the debtor does not perform the debt pursuant to the time limitation
agreed in the contract, the creditor shall be entitled to have right
to have a lien on the said property according to this Law, to keep the
said property to offset or have priority in satisfying for the claim
out of proceeds from the value amount of the auction, sale of the said
property.
master obligatory right and its interest, contractual fine, damage
compensation, expense for keeping the subject with a lien and expense
for realization of the right of lien.
contract of safekeeping, contract of carriage or contract for
processing work, if the debtor does not perform the debt, the creditor
shall be entitled to have a lien on it.
laws, shall be applied to the provisions of the proceeding paragraph.
be had with a lien.
the subject with a lien shall be equal to the amount of the debt.
subject with a lien properly. If he does not keep the subject with a
lien properly so that the subject with a lien is extinct or damaged,
the lienor shall bear the civil liability.
contract that, after the creditor has a lien on the property, the
debtor shall perform the debt within the time limitation that shall
not be less than 2 months. If the creditor and the debtor have not
agreed in the contract, after the creditor has a lien on the property
of the debtor, he shall determine a time limitation of more than 2
months, inform the debtor to perform the debt within the said time
limitation.
expiration of the time limitation, the creditor may make an agreement
with the debtor to keep the subject with a lien to offset, and may
also auction, sell the subject with a lien according to the law.
sold, the part of which the value amount exceeds the amount of the
obligatory right shall be owned by the debtor, the short part shall be
satisfied by the debtor.
the creditor.
Chapter VI Deposit
deposit to another party as guarantee. After the debtor performs the
debt, the deposit shall offset the value amount or be returned. If the
party who pays the deposit does not perform the debt, he shall not be
entitled to have right to demand the deposit to be returned; if the
party who accepts the deposit does not perform the debt, he shall
return twice the amount of the deposit.
shall agree the time limitation to pay the deposit in the deposit
contract. The deposit contract shall be effective as the date of
actual payment of the deposit.
parties, but shall not exceed 20 percent of the target amount of the
master contract.
Chapter VII Supplementary Provisions
land and the fixtures upon the land such as a house or woods.
the real estate.
contract, deposit contract prescribed in this Law may be a written
contract entered into separately, including the mails or letters,
faxes between the parties which have the nature of guarantee, and may
also be the guarantee articles in the master contract.
offset or sold, the market price shall be refereed to.
provisions on the guarantee, they shall be complied with.
October 1, 1995.
URL: http://www.asianlii.org/cn/legis/cen/laws/gl116