Legal analysis: The court will freeze the collateral that the borrower originally pledged to the bank, and then conduct an auction. The proceeds from the auction of the collateral will be used for repayment.

Legal basis: "Law of the People's Republic of China on Commercial Banks"

Article 35 Commercial bank loans shall be based on the borrower's purpose of borrowing, repayment ability, and repayment. The payment methods and other circumstances will be strictly reviewed. Commercial bank loans should implement a system of separation of review and loan and hierarchical review and approval.

Article 36 For commercial bank loans, the borrower shall provide guarantee. Commercial banks shall strictly examine the guarantor's repayment ability, the ownership and value of mortgages and pledges, and the feasibility of realizing mortgage rights and pledge rights.

If, after review and evaluation by a commercial bank, it is confirmed that the borrower has good credit and can indeed repay the loan, no guarantee is required.

Article 37 A commercial bank shall enter into a written contract with the borrower for a loan. The contract should stipulate the type of loan, purpose of borrowing, amount, interest rate, repayment period, repayment method, liability for breach of contract and other matters that both parties deem necessary to agree on.