On the Interpretation of Paragraph 2 of Article 63 in Guarantee Law

Mortgage guarantee means that the debtor or a third party takes the property as the guarantee of the creditor's rights without transferring the possession of a specific thing. When the debtor fails to perform the debt, the creditor has the right to discount the property or give priority to the payment of the auction or sale of the property in accordance with the provisions of the guarantee law.

The debtor's behavior of using his own house, car and other property as the guarantee of his creditor's rights is called mortgage guarantee. As a way of guarantee, China's laws clearly stipulate whether the debtor's related property can be used as collateral and the related mortgage order.

Extended information:

If there are more than two guarantors for the same debt, the guarantors shall bear the guarantee responsibilities according to the guarantee share agreed in the guarantee contract. If there is no agreement on the share of guarantee, the guarantor shall bear joint and several liability, and the creditor may require any guarantor to bear all the guarantee liability, and the guarantor shall have the obligation to guarantee the realization of all the creditor's rights.

a guarantor who has assumed the suretyship liability has the right to claim compensation from the debtor, or ask other guarantors who are jointly and severally liable to pay off their share.

Baidu Encyclopedia-Guarantee Law