(Adopted at the 14th meeting of the Standing Committee of the Eighth National People's Congress on June 30, 1995, the Order No. 50 of the President of the People's Republic of China and the People's Republic of China was promulgated on June 30, 1995. Effective from October 1, 2020)

Chapter 1 General Provisions

Article 1 is formulated to promote financial integration and commodity circulation, ensure the realization of creditor's rights, and develop the socialist market economy. Law.

Article 2: In economic activities such as lending, buying and selling, cargo transportation, processing and contracting, if a creditor needs to use a guarantee to ensure the realization of its creditor's rights, it may set up a guarantee in accordance with the provisions of this Law.

The guarantee methods specified in this Law are guarantee, mortgage, pledge, lien and deposit.

Article 3: Guarantee activities shall follow the principles of equality, voluntariness, fairness, and good faith.

Article 4: When a third party provides a guarantee for a debtor to a creditor, it may require the debtor to provide a counter-guarantee.

Counter guarantee shall be subject to the guarantee provisions of this Law.

Article 5: The guarantee contract is a subsidiary contract of the main contract. If the main contract is invalid, the guarantee contract will be invalid. If the guarantee contract stipulates otherwise, the stipulation shall prevail.

After the guarantee contract is confirmed to be invalid, if the debtor, guarantor and creditor are at fault, they shall each bear corresponding civil liability according to their faults.

Chapter 2 Guarantee

Section 1 Guarantee and Guarantor

Article 6 The term “guarantee” in this Law refers to the agreement between the guarantor and the creditor that if the debtor fails to perform When a debt is owed,

the guarantor performs the debt or assumes responsibilities in accordance with the agreement.

Article 7: Legal persons, other organizations or citizens with the ability to repay debts on behalf of others may serve as guarantors.

Article 8: State agencies shall not serve as guarantors, except for on-lending loans approved by the State Council for the use of loans from foreign governments or international economic organizations.

Article 9: Schools, kindergartens, hospitals and other public institutions and social groups for public welfare are not allowed to serve as guarantors.

Article 10: Branches and functional departments of enterprise legal persons shall not be guarantors.

If a branch of an enterprise legal person has written authorization from the legal person, it can provide guarantees within the scope of authorization.

Article 11: No unit or individual may force banks or other financial institutions or enterprises to provide guarantees for others; banks, other financial institutions or enterprises have the right to refuse any act that forces them to provide guarantees for others.

Article 12 If there are two or more guarantors for the same debt, the guarantor shall bear the guarantee liability according to the guarantee share agreed in the guarantee contract. If there is no agreement on the guarantee share, the guarantor shall bear joint liability. The creditor may require any guarantor to bear all guarantee responsibilities, and all guarantors shall have the obligation to guarantee the realization of all claims. The guarantor that has assumed the guarantee liability has the right to recover from the debtor or require other guarantors who bear joint and several liability to pay off their share.

Section 2 Guarantee Contract and Guarantee Method

Article 13 The guarantor and the creditor shall enter into a guarantee contract in writing.

Article 14 The guarantor and the creditor may enter into separate guarantee contracts for a single main contract, or they may agree to enter into a guarantee for a loan contract or a certain commodity transaction contract that occurs continuously within a certain period of time within the maximum creditor's rights limit. contract.

Article 15 A guarantee contract shall include the following contents:

(1) Type and amount of the guaranteed principal claim;

(2) Debtor’s performance of debt period;

(3) Method of guarantee;

(4) Scope of guarantee;

(5) Period of guarantee;

(6) Other matters deemed necessary by both parties.

If the guarantee contract does not fully contain the contents specified in the preceding paragraph, it may be supplemented and corrected.

Article 16 The forms of guarantee include:

(1) General guarantee;

(2) Joint and several liability guarantee.

Article 17 If the parties agree in the guarantee contract that when the debtor is unable to perform the debt, the guarantor shall bear the guarantee liability, it is a general guarantee.

The guarantor of a general guarantee may refuse to assume guarantee liability to the creditor until the dispute over the main contract has not been tried or arbitrated and the debtor's property is enforced in accordance with the law and the debtor still cannot perform the debt.

Under any of the following circumstances, the guarantor shall not exercise the rights stipulated in the preceding paragraph:

(1) The debtor's domicile changes, causing major difficulties for the creditor to require him to perform his debt;

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(2) The People's Court accepts the debtor's bankruptcy case and suspends the execution proceedings;

(3) The guarantor waives the rights stipulated in the preceding paragraph in writing.

Article 18: If the parties agree in the guarantee contract that the guarantor and the debtor shall bear joint and several liability for the debt, it is a joint liability guarantee.

If the debtor under a joint liability guarantee fails to perform the debt at the expiration of the debt performance period stipulated in the main contract, the creditor may require the debtor to perform the debt, or require the guarantor to assume guarantee liability within the scope of its guarantee.

Article 19: If the parties have not agreed on the guarantee method or the agreement is unclear, they shall bear the guarantee liability in accordance with the joint liability guarantee.

Article 20: The guarantor of a general guarantee and a joint liability guarantee shall have the debtor’s right of defense. If the debtor gives up the right to defend against the debt, the guarantor still has the right to defend.

The right of defense refers to the right of the debtor to oppose the creditor's exercise of claim based on legal grounds when the creditor exercises its claim.

Section 3 Guarantee Liability

Article 21 The scope of guarantee includes the main creditor's rights and interest, liquidated damages, damages and expenses for realizing the creditor's rights. If the guarantee contract stipulates otherwise, the stipulation shall prevail.

If the parties have not agreed on the scope of the guarantee or the agreement is unclear, the guarantor shall bear liability for all debts.

Article 22: During the guarantee period, if the creditor transfers the principal claim to a third party in accordance with the law, the guarantor shall continue to bear the guarantee liability within the scope of the original guarantee. If the guarantee contract stipulates otherwise, the stipulation shall prevail.

Article 23 During the guarantee period, if the creditor allows the debtor to transfer the debt, it must obtain the written consent of the guarantor. The guarantor will no longer assume liability for debts transferred without its consent.

Article 24 If the creditor and the debtor agree to change the main contract, they must obtain the written consent of the guarantor. Without the written consent of the guarantor, the guarantor will no longer bear the guarantee liability. If the guarantee contract stipulates otherwise, the stipulation shall prevail.

Article 25: If the guarantor of a general guarantee and the creditor do not agree on a guarantee period, the guarantee period shall be six months from the expiration of the principal debt performance period.

During the guarantee period stipulated in the contract and the guarantee period stipulated in the preceding paragraph, if the creditor does not file a lawsuit against the debtor or apply for arbitration, the guarantor shall be exempted from the guarantee liability; if the creditor has filed a lawsuit or applied for arbitration, the lawsuit shall apply during the guarantee period. Interruption of statute of limitations provisions.

Article 26: If the guarantor of a joint liability guarantee and the creditor have not agreed on a guarantee period, the creditor has the right to require the guarantor to assume the guarantee liability within six months from the expiration of the debt performance period.

If the creditor does not require the guarantor to bear guarantee liability during the guarantee period agreed in the contract and the guarantee period stipulated in the preceding paragraph, the guarantor shall be exempted from guarantee liability.

Article 27 The guarantor guarantees consecutive claims in accordance with the provisions of Article 14 of this Law. If the guarantee period is not agreed upon, the guarantor may notify the creditor in writing at any time to terminate the guarantee contract, but the guarantor shall not The creditor shall bear the guarantee liability for the claims incurred before the creditor.

Article 28: If the same creditor's right is guaranteed by both guarantee and material guarantee, the guarantor shall bear the liability for the creditor's right other than the physical guarantee.

If the creditor waives the security of the property, the guarantor shall be exempted from liability to the extent that the creditor waives its rights.

Article 29 If a branch of an enterprise legal person enters into a guarantee contract with a creditor without the written authorization of the legal person or exceeds the scope of authorization, the contract shall be invalid or the part beyond the scope of authorization shall be invalid. The creditor and the enterprise legal person are at fault. If the creditor is not at fault, the corporate legal person shall bear the civil liability.

Article 30 The guarantor shall not bear civil liability under any of the following circumstances:

(1) The parties to the main contract collude to defraud the guarantor into providing guarantee;

(2) The creditor of the main contract uses fraud, coercion and other means to cause the guarantor to provide guarantee against his true intention.

Article 31: After assuming the guarantee liability, the guarantor has the right to recover from the debtor.

Article 32: After the People's Court accepts the debtor's bankruptcy case, if the creditor fails to declare its creditor's rights, the guarantor may participate in the distribution of the bankruptcy property and exercise the right of recourse in advance.

Chapter 3 Mortgage

Section 1 Mortgage and Mortgage

Article 33 The term “mortgage” in this Law refers to the debtor or a third party The possession of the property listed in Article 34 of this Law shall not be transferred and the property shall be used as security for the creditor's rights. When the debtor fails to perform its debts, the creditor shall have the right to receive priority payment from the price of the property at a discount or from the auction or sale of the property in accordance with the provisions of this Law.

The debtor or third party specified in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property providing guarantee is the mortgage.

Article 34 The following properties may be mortgaged:

(1) Houses and other fixed objects on the ground owned by the mortgagor;

(2) The mortgagor All machinery, means of transportation and other property;

(3) State-owned land use rights, houses and other fixtures on the ground that the mortgagor has the right to dispose of in accordance with the law;

(4) ) State-owned machinery, transportation vehicles and other properties that the mortgagor has the right to dispose of in accordance with the law;

(5) Barren mountains, ditches, hills and beaches contracted by the mortgagor in accordance with the law and mortgaged with the consent of the contract-issuing party Land use rights of wasteland;

(6) Other properties that can be mortgaged in accordance with the law.

The mortgagor may mortgage the properties listed in the preceding paragraph together.

Article 35: The creditor's rights guaranteed by the mortgagor shall not exceed the value of the mortgaged property.

After a property is mortgaged, if the value of the property is greater than the balance of the secured creditor's rights, it can be mortgaged again, but it cannot exceed the balance.

Article 36: If a house on state-owned land acquired in accordance with the law is mortgaged, the state-owned land use rights within the scope occupied by the house shall be mortgaged at the same time.

If the state-owned land use rights acquired through transfer are mortgaged, the houses on the state-owned land at the time of mortgage shall be mortgaged at the same time.

The land use rights of township (town) and village enterprises shall not be mortgaged separately. If the factories and other buildings of township (town) or village enterprises are mortgaged, the land use rights within the scope of their occupation shall be mortgaged at the same time.

Article 37 The following properties shall not be mortgaged:

(1) Land ownership;

(2) Cultivated land, homesteads, private land, private hills, etc. Collectively owned land use rights, except those stipulated in Article 34 (5) and Article 36 (3) of this Law;

(3) Schools, kindergartens, hospitals, etc. Educational facilities, medical and health facilities and other social welfare facilities of public institutions and social groups for public welfare purposes;

(4) Properties whose ownership and use rights are unknown or in dispute;

(5) Properties that have been sealed up, detained, and supervised in accordance with the law;

(6) Other properties that cannot be mortgaged in accordance with the law.

Section 2 Mortgage Contract and Mortgage Registration

Article 38 The mortgagor and the mortgagee shall conclude a mortgage contract in writing.

Article 39 A mortgage contract shall include the following contents:

(1) Type and amount of the guaranteed principal claim;

(2) Performance by the debtor The term of the debt;

(3) The name, quantity, quality, condition, location, ownership or right of use of the mortgage;

(4) The scope of the mortgage guarantee ;

(5) Other matters deemed necessary by the parties.

If the mortgage contract does not fully contain the contents specified in the preceding paragraph, it may be supplemented and corrected.

Article 40 When entering into a mortgage contract, the mortgagee and the mortgagor shall not stipulate in the contract that the ownership of the mortgaged property will be transferred to the creditor when the mortgagee has not been repaid at the expiration of the debt performance period.

Article 41: If the parties mortgage the property specified in Article 42 of this Law, they shall register the mortgaged property, and the mortgage contract shall take effect from the date of registration.

Article 42: The departments that handle the registration of mortgages are as follows:

(1) If the land use right without fixed objects on the ground is mortgaged, it shall be the land for which the land use right certificate is issued. Management department;

(2) If urban real estate or factories and other buildings of township (town) or village enterprises are mortgaged, it shall be the department specified by the local people's government at or above the county level;

(3) If the forest is mortgaged, it shall be the forest management department at or above the county level; (4) If the aircraft, ship or vehicle is mortgaged, it shall be the registration department of the means of transportation;

( 5) If the equipment and other chattels of the enterprise are mortgaged, the industrial and commercial administration department where the property is located shall be the one.

Article 43: If the parties mortgage other properties, they may voluntarily register the mortgage, and the mortgage contract will take effect from the date of signing.

If the party concerned fails to register the mortgage property, he shall not confront the third party. When a party handles the registration of a mortgage, the registration department shall be the notary department where the mortgagor is located.

Article 44 When handling the registration of mortgage property, the following documents or copies thereof shall be provided to the registration department:

(1) Main contract and mortgage contract;

Article 45: Information registered by the registration department shall be allowed to be inspected, copied or copied.

Section 3: The Effect of Mortgage

Article 46: The scope of mortgage guarantee includes the main creditor's right and interest, liquidated damages, damages and expenses for realizing the mortgage right. If the mortgage contract stipulates otherwise, the stipulation shall prevail.

Article 47 If the debt performance period expires and the debtor fails to perform the debt, causing the mortgage to be seized by the people's court in accordance with the law, the mortgagee shall have the right to collect the natural interest separated from the mortgage from the date of seizure and The legal interest that a mortgagor can receive on the mortgaged property. If the mortgagee fails to notify the obligor who is required to pay off the statutory interest of the fact of seizure of the mortgaged property, the mortgage right shall not be as effective as the interest.

The profits in the preceding paragraph shall first be used to offset the expenses for collecting the profits.

Article 48 If the mortgagor mortgages the leased property, he shall notify the lessee in writing that the original lease contract shall continue to be valid.

Article 49 During the mortgage period, if the mortgagor transfers the registered mortgage, it shall notify the mortgagee and inform the transferee that the transferred property has been mortgaged; the mortgagor fails to notify the mortgagee Or if the transferee is not notified, the transfer will be invalid.

If the price of the transferred mortgage is significantly lower than its value, the mortgagee may require the mortgagor to provide corresponding guarantee; if the mortgagor fails to provide it, the mortgage shall not be transferred.

The price received by the mortgagor from the transfer of the mortgaged property shall be paid off to the mortgagee in advance for the guaranteed creditor's rights or deposited with a third party agreed with the mortgagee. The portion exceeding the amount of the creditor's right shall belong to the mortgagor, and the remaining portion shall be paid off by the debtor.

Article 50: The mortgage right shall not be separated from the creditor's rights and transferred separately or used as a guarantee for other creditors' rights.

Article 51: If the mortgagor's behavior is enough to reduce the value of the mortgaged property, the mortgagee has the right to require the mortgagor to stop his behavior. When the value of the mortgaged property decreases, the mortgagee has the right to require the mortgagor to restore the value of the mortgaged property or provide security equivalent to the reduced value.

If the mortgagor is not at fault for the reduction in the value of the mortgaged property, the mortgagee may only require security within the scope of the compensation received by the mortgagor for the damage. The undiminished portion of the value of the collateral remains as security for the claim.

Article 52: A mortgage right exists simultaneously with the creditor's rights it guarantees. If the creditor's rights are extinguished, the mortgage right will also be extinguished.

Section 4 Realization of Mortgage Rights

Article 53 If the mortgagee has not been repaid at the expiration of the debt performance period, he may agree with the mortgagor to discount the mortgaged property or auction it. , the proceeds from the sale of the mortgaged property shall be repaid; if the agreement fails, the mortgagee may file a lawsuit in the People's Court.

After the mortgaged property is discounted, auctioned, or sold, the portion of the price exceeding the amount of the creditor's rights shall belong to the mortgagor, and the shortfall shall be paid off by the debtor.

Article 54 If the same property is mortgaged to more than two creditors, the proceeds from the auction or sale of the mortgaged property shall be paid off in accordance with the following provisions:

(1) The mortgage contract shall take effect upon registration If the mortgaged property is registered, it shall be paid off in accordance with the order in which the mortgaged property is registered; if the order is the same, it shall be paid off in accordance with the proportion of the creditor's rights;

(2) If the mortgage contract takes effect from the date of signing, if the mortgaged property has been registered, the mortgaged property shall be paid off in accordance with the provisions of Article 1 Item (1) stipulates repayment; if it is not registered, repayment shall be in the order of the effective time of the contract; if the order is the same, repayment shall be in accordance with the proportion of creditor's rights. Registered mortgages will be paid before unregistered mortgages.

Article 55: After the urban real estate mortgage contract is signed, the newly added houses on the land do not belong to the mortgage. When the mortgaged real estate needs to be auctioned, the newly added houses on the land can be auctioned together with the mortgaged property in accordance with the law. However, the mortgagee has no right to receive priority in payment of the proceeds from the auction of the newly added houses.

In accordance with the provisions of this Law, if the land use rights of contracted wasteland are mortgaged, or if the land use rights of the township (town) or village enterprise's factories and other buildings are mortgaged, the mortgage rights shall not be used until the mortgage rights are realized. Afterwards, collective land ownership and land use cannot be changed without legal procedures.

Article 56: For the price obtained from the auction of allocated state-owned land use rights, after paying an amount equivalent to the land use right transfer fee payable in accordance with the law, the mortgagee has the priority to receive repayment.

Article 57: The third party who provides mortgage guarantee for the debtor shall have the right to recover from the debtor after the mortgagee realizes the mortgage right.

Article 58: The mortgage right is extinguished due to the loss of the mortgaged property. Compensation received for loss shall be used as mortgaged property.

Section 5: Maximum Mortgage

Article 59: The term "maximum mortgage" as used in this Law refers to the agreement between the mortgagor and the mortgagee that within the limit of the maximum amount of claims, The mortgage is used as a guarantee for claims that occur continuously within a certain period of time.

Article 60: A loan contract may be accompanied by a maximum mortgage contract.

A contract signed between a creditor and a debtor for continuous transactions of a certain commodity within a certain period of time can be attached to a maximum mortgage contract.

Article 61: The creditor's rights of the main contract with the highest amount of mortgage shall not be transferred.

Article 62: In addition to the provisions of this section, other provisions of this chapter shall apply to the maximum amount of mortgage.

Chapter 4 Pledge

Section 1 Pledge of Chattels

Article 63 The term “pledge of chattels” as used in this Law refers to the pledge of chattels by the debtor or a third party. The movable property is transferred to the creditor for possession, and the movable property is used as security for the creditor's claim. When the debtor fails to perform its debts, the creditor shall have the right to receive priority payment from the price of the movable property at a discount or from the auction or sale of the movable property in accordance with the provisions of this Law.

The debtor or third party specified in the preceding paragraph shall be the pledger, the creditor shall be the pledgee, and the transferred movables shall be the pledged property.

Article 64 The pledgor and the pledgee shall enter into a pledge contract in writing.

The pledge contract becomes effective when the pledged property is handed over and taken possession of by the pledgee.

Article 65 A pledge contract shall include the following contents:

(1) Type and amount of the guaranteed principal claim;

(2) Performance by the debtor The term of the debt;

(3) The name, quantity, quality and condition of the pledge;

(4) The scope of the pledge guarantee;

(5) The time for the handover of the pledged property;

(6) Other matters deemed necessary by the parties.

If the pledge contract does not fully contain the contents specified in the preceding paragraph, it may be supplemented and corrected.

Article 66 The pledgor and the pledgee shall not stipulate in the contract that when the debt performance period expires and the pledgee has not been repaid, the ownership of the pledged property will be transferred to the pledgee.

Article 67: The scope of pledge guarantee includes the main creditor's rights and interest, liquidated damages, damages, pledge storage fees and fees for realizing the pledge. If the pledge contract stipulates otherwise, the stipulation shall prevail.

Article 68: The pledgee has the right to collect the interest generated by the pledged property. If the pledge contract stipulates otherwise, the stipulation shall prevail.

The profits in the preceding paragraph shall first be used to offset the expenses for collecting the profits.

Article 69: The pledgee shall have the obligation to properly keep the pledged property. If the pledged property is lost or damaged due to poor storage, the pledgee shall bear civil liability.

If the pledgee fails to properly keep the pledged property, which may result in its loss or damage, the pledger may require the pledgee to deposit the pledged property, or require the debtor's rights to be paid off in advance and the pledged property be returned.

Article 70: If the pledged property is likely to be damaged or its value is significantly reduced, which is enough to jeopardize the rights of the pledgee, the pledgee may require the pledger to provide corresponding guarantees. If the pledger fails to provide it, the pledgee may auction or sell the pledged property, and agree with the pledgor to use the proceeds from the auction or sale to pay off the guaranteed creditor's rights in advance or to deposit it with a third party agreed with the pledgor. .

Article 71: When the debt performance period expires and the debtor performs the debt, or the pledger pays off the guaranteed creditor's rights in advance, the pledgee shall return the pledged property.

If the pledgee has not been repaid at the expiration of the debt performance period, he may agree with the pledgor to discount the pledged property, or he may auction or sell the pledged property in accordance with the law.

After the pledged property is discounted, auctioned, or sold, the portion of the price exceeding the amount of the creditor's rights shall belong to the pledger, and the shortfall shall be paid off by the debtor.

Article 72: A third party who pledges security for a debtor shall have the right to recover from the debtor after the pledgee realizes the pledge.

Article 73: The right to pledge is extinguished due to the loss of the pledged thing. The compensation obtained due to the loss shall be regarded as the pledged property.

Article 74: The right of pledge exists simultaneously with the creditor's rights it guarantees. If the creditor's rights are extinguished, the right of pledge shall also be extinguished.

Section 2 Pledge of Rights

Article 75 The following rights can be pledged:

(1) Bills of exchange, checks, promissory notes, bonds, and deposit receipts , warehouse receipts, bills of lading;

(2) Shares and stocks that can be transferred in accordance with the law;

(3) Property rights in trademarks, patents, and copyrights that can be transferred in accordance with the law;

(4) Other rights that can be pledged according to law.

Article 76: If a bill of exchange, check, promissory note, bond, deposit receipt, warehouse receipt, or bill of lading is pledged, the certificate of title shall be delivered to the pledgee within the time limit specified in the contract. The pledge contract shall take effect from the date of delivery of the rights certificate.

Article 77 If a bill of exchange, check, cashier's check, bond, deposit receipt, warehouse receipt, or bill of lading indicating the date of redemption or delivery is pledged, the bill of exchange, check, cashier's check, bond, deposit If the date of redemption or delivery of the bill, warehouse receipt or bill of lading is earlier than the debt performance period, the pledgee may cash or deliver the goods before the expiration of the debt performance period and agree with the pledgor to use the cashed price or the goods withdrawn to pay off the debt in advance. The guaranteed creditor's rights may be deposited with a third party agreed with the pledgor.

Article 78: If stocks that are transferable in accordance with the law are pledged, the pledger and the pledgee shall enter into a written contract and register the pledge with the securities registration agency. The pledge contract shall take effect from the date of registration.

After the stocks are pledged, they may not be transferred, but they can be transferred with the agreement of the pledger and the pledgee. The price obtained by the pledger from the transfer of stocks shall be paid to the pledgee in advance for the guaranteed creditor's rights or deposited with a third party agreed with the pledgee.

If the shares of a limited liability company are pledged, the relevant provisions of the Company Law on share transfer shall apply. The pledge contract shall take effect from the date when the shares are pledged and recorded in the shareholder register.

Article 79: Where property rights in trademarks, patents, and copyrights that are transferable in accordance with the law are pledged, the pledger and the pledgee shall enter into a written contract and submit it to their management department. Pledge registration. The pledge contract shall take effect from the date of registration.

Article 80 After the rights stipulated in Article 79 of this Law are pledged, the pledger shall not transfer or permit others to use them, but they may be transferred or used with the consent of the pledger and the pledgee through negotiation. Licensed to others. The transfer fees and license fees earned by the pledger shall be paid to the pledgee in advance for the guaranteed creditor's rights or deposited with a third party agreed with the pledgee.

Article 81: In addition to the provisions of this section, the provisions of Section 1 of this Chapter shall apply to the pledge of rights.

Chapter 5 Lien

Article 82 The term “lien” as used in this Law means that in accordance with the provisions of Article 84 of this Law, the creditor takes possession of the debtor's chattels in accordance with the contract. , if the debtor fails to perform the debt within the time limit stipulated in the contract, the creditor has the right to retain the property in accordance with the provisions of this Law and receive priority in repayment at the discount of the property or the proceeds from the auction or sale of the property.

Article 83: The scope of lien guarantee includes the principal creditor's rights and interest, liquidated damages, damages, lien storage fees and fees for realizing the lien.

Article 84: If the debtor fails to perform the debt arising from a custody contract, transportation contract, or processing contract, the creditor shall have the right of lien.

For other contracts that may be retained by law, the provisions of the preceding paragraph shall apply.

The parties may stipulate in the contract the items that shall not be retained.

Article 85: If the lien property is divisible, the value of the lien object shall be equal to the amount of the debt.

Article 86: The lien holder has the obligation to properly keep the lien items. If the lien object is lost or damaged due to poor storage, the lien holder shall bear civil liability.

Article 87 The creditor and the debtor shall agree in the contract that after the creditor retains the property, the debtor shall perform the debt within a period of no less than two months. If there is no agreement between the creditor and the debtor in the contract, after the creditor has placed a lien on the debtor's property, it shall determine a period of more than two months and notify the debtor to perform the debt within that period.

If the debtor still fails to perform after the due date, the creditor may agree with the debtor to discount the lien property, or may auction or sell the lien property in accordance with the law.

After the lien property is discounted, auctioned, or sold, the portion of the price exceeding the amount of the creditor's rights shall belong to the debtor, and the shortfall shall be paid off by the debtor.

Article 88 The right of lien is extinguished due to the following reasons:

(1) The creditor's right is extinguished;

(2) The debtor provides another guarantee and the creditor accepted.

Chapter 6 Deposit

Article 89 The parties may agree that one party shall pay a deposit to the other party as a guarantee for the creditor's rights. After the debtor performs its debt, the deposit shall be used as payment or recovered. If the party paying the deposit fails to perform the agreed debt, it has no right to request the return of the deposit; if the party receiving the deposit fails to perform the agreed debt, it shall return double the deposit.

Article 90 The deposit shall be agreed in writing. The parties shall agree on the time limit for deposit payment in the deposit contract. The deposit contract takes effect from the date of actual payment of the deposit.

Article 91 The amount of the deposit shall be agreed upon by the parties, but shall not exceed 20% of the subject matter of the main contract.

Chapter 7 Supplementary Provisions

Article 92 The real estate referred to in this Law refers to land, houses, trees and other fixed objects on the ground.

The movables mentioned in this Law refer to things other than real estate.

Article 93 The guarantee contracts, mortgage contracts, pledge contracts and deposit contracts referred to in this Law may be separately concluded written contracts, including letters, faxes, etc. of a guarantee nature between the parties, as well as It can be a guarantee clause in the main contract.

Article 94 The discount or sale of mortgaged property, pledged property and lien property shall refer to the market price.

Article 95: If the Maritime Law and other laws have special provisions on guarantees, those provisions shall prevail.

Article 96 This Law shall come into effect on October 1, 1995.