How often do banks dispose of the collateral of overdue loans?

If it is overdue, the bank will not dispose of the collateral. If it is overdue, the bank will call you three months later and then sue you for disposing of your assets.

Collateral refers to the collateral that the debtor (mortgagor) transfers to the creditor (mortgagee) to guarantee the performance of an obligation. It can be tangible property or registered intangible property, such as superficies, government bonds and life insurance. In some countries, it is divided into chattel mortgage and real estate mortgage. The former is movable property, including negotiable instruments and ownership certificates. The latter such as land and buildings. According to the General Principles of Civil Law, any property provided as security, whether it is real estate, movable property or securities, and whether it is transferred or not, is called collateral.

Can be used as collateral

Refers to property that has been used as collateral. According to the provisions of Article 34 of our country, the following properties can be used as collateral:

1. Houses and other fixed objects on the ground owned by the Mortgagor;

2. Machines, vehicles and other property owned by the mortgagor;

3. State-owned land use rights, houses and other fixed objects on the ground that the mortgagor has the right to dispose of according to law;

4. State-owned machinery, vehicles and other property that the mortgagor has the right to dispose of according to law;

5. The land use right of barren hills, gullies, hills and beaches contracted by the mortgagor according to law and mortgaged with the consent of the employer;

6. Other properties that can be mortgaged according to law.

Non-mortgaged property

Non-mortgaged properties include:

(1) Land ownership:

(2) The right to use collectively-owned land, such as cultivated land, homestead, private plots and private hills, except as provided for in Item 5 of Article 34 and Paragraph 3 of Article 36 of this Law;

(3) Educational facilities, medical and health facilities and other public welfare facilities of schools, kindergartens, hospitals and other institutions and social organizations;

(4) Property whose ownership and use right are unknown or controversial;

(5) Property that has been sealed up, detained or supervised according to law;

(six) other property that may not be mortgaged according to law.

Article 4 1 of China's Guarantee Law stipulates: "If a party mortgages the property specified in Article 42 of this Law, it shall register the mortgaged property, and the mortgage contract shall take effect from the date of registration." Obviously, the "Guarantee Law" regards the registration of collateral as a condition for the entry into force of mortgage contract, and equates the generation of mortgage right with the entry into force of mortgage contract.