Legal basis: Article 394 of the Civil Code of People's Republic of China (PRC) guarantees the performance of debts. If the debtor or a third party does not transfer the possession of the property and mortgage the property to the creditor, the creditor shall have the right to be paid in priority for the property if the debtor fails to perform the due debt or realize the mortgage right according to the agreement of the parties. The debtor or the third party specified in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property that provides guarantee is the mortgaged property.