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What does a counter-guarantee contract mean?
1. What does the counter-guarantee contract mean?

1. Counter-guarantee contract refers to the guarantee contract signed by the third party providing guarantee for the debtor with the counter-guarantee guarantor to ensure the realization of its right of recourse. For example, when a bank issues a secured loan to a borrower, the guarantor requires the borrower to provide another guarantee for himself, because he must bear the risk, and the guarantee provided by the borrower for the guarantor is a counter-guarantee. The signed contract is a counter-guarantee contract.

2. Legal basis: Article 388th of the Civil Code of People's Republic of China (PRC).

To establish a security interest, a security contract shall be concluded in accordance with the provisions of this Law and other laws. Guarantee contracts include mortgage contracts, pledge contracts and other contracts with guarantee functions. The guarantee contract is a subsidiary contract of the principal creditor's rights and debts contract. If the principal creditor's rights and debts contract is invalid, the guarantee contract is invalid, except as otherwise provided by law.

If the debtor, guarantor and creditor are at fault after the guaranty contract is confirmed to be invalid, they shall bear corresponding civil liabilities according to their faults.

Second, the difference between the maximum guarantee contract and the guarantee contract

1. According to the Civil Code of People's Republic of China (PRC), the maximum guaranteed debt is limited to loan contracts and commodity trading contracts that occur within a certain period; The Civil Code of People's Republic of China (PRC) stipulates: "The guarantee mentioned in this law refers to the act that the guarantor and the creditor agree that the guarantor will perform the debt or assume the responsibility according to the agreement when the debtor fails to perform the debt", and the scope is not limited, so the general guarantee is widely applicable to all kinds of debts, transactions and commitments that can be measured in money.

2. The maximum guarantee is the guarantee of uncertain debts in the future. The object of guarantee is generally the debt that will happen in the future. Whether these debts will happen in the future is uncertain, and the amount of debt is also uncertain.

3. The maximum amount of guarantee guarantees the debts that occur continuously within a certain period of time. The guaranteed debt must be continuous, and the maximum amount of guarantee shall not be set for discontinuous debts. The debt guaranteed by ordinary guarantee is a guarantee corresponding to specific debt, which is not continuous.

4. The maximum amount of guarantee is the limit guarantee, and the creditor can only ask the guarantor to bear the guarantee responsibility within the maximum amount, that is, no matter how it changes in the future, it is limited to the maximum amount. If the maximum amount is not reached, it is limited to the actual debt balance; If it exceeds the maximum limit, it shall be limited to the maximum limit.