It is illegal for the village committee to privately guarantee loans. Because institutional legal persons are not allowed to be guarantors, except for on-lending loans approved by the State Council to use loans from foreign governments or international economic organizations. Non-profit legal persons and unincorporated organizations with public welfare purposes shall not be guarantors.

Legal Basis

Article 681 of the Civil Code

The guarantee contract is to ensure the realization of the creditor's rights. The guarantor and the creditor agree that when the debtor A contract in which the guarantor performs the debt or assumes liability when due debts are not performed or circumstances agreed upon by the parties occur.

Article 682

The guarantee contract is a subordinate contract to the principal creditor's rights and debts contract. If the principal creditor's rights and debts contract is invalid, the guarantee contract shall be invalid, unless otherwise provided by law. 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 based on their faults.

Article 683

Official legal persons shall not be guarantors, except for on-lending loans approved by the State Council for the use of loans from foreign governments or international economic organizations. Non-profit legal persons and unincorporated organizations with public welfare purposes shall not be guarantors.