2. If the repayment on behalf of others is actually insolvent, but has provided a guarantee for others, the guarantee is valid and shall bear the guarantee liability.
Guarantee law
Article 7 A legal person, other organization or citizen who has the ability to pay off debts on his behalf may act as a guarantor.
Supreme Court's Interpretation of Guarantee Law
Article 14 If a legal person, other organization or natural person who does not have full compensation capacity enters into a guaranty contract as a guarantor, the people's court shall not support it.