Legal analysis
A secured loan is a loan granted on the condition that a third party provides a corresponding guarantee for the borrower. The creditor may simultaneously or successively require all or part of or one of the joint debtors to perform all or part of their obligations, and the requested debtor may not raise a defense on the grounds that it exceeds its share payable. As long as the debts are not fully paid off, the joint debtors are obliged to pay off the outstanding debts, regardless of whether they have paid off the debts at the request of the creditors. A guarantee can be a person's guarantee or a thing's guarantee. Personal guarantee refers to the guarantee document issued by an economic entity with repayment ability. When the borrower fails to repay the loan principal and interest, the guarantor shall bear the responsibility of repaying the loan principal and interest. The guarantee of things is based on a specific kind or a certain right. Once the borrower fails to perform the contract, the bank can exercise its rights on the collateral to ensure that the creditor's rights will not be lost. Guarantee is divided into general guarantee and joint guarantee. 1. If it is stated in the guarantee that if the borrower is unable to repay, he will be responsible for the guarantee, then it is a general guarantee, which is stipulated by law. The guarantor's property can only be executed if the borrower is legally unable to repay it (after the application is executed). 2. If the guarantor fails to write any of the above contents, it is a joint guarantee, and the creditor can ask the borrower or the guarantor for money. Joint and several guarantees are more responsible.
legal ground
People's Republic of China (PRC) Civil Code
Article 386 Where the debtor fails to perform the due debt or the parties agree to realize the security interest, the holder of the security interest shall have the priority to be compensated for the secured property according to law, except as otherwise provided by law.
Article 392 Where the secured creditor's right is secured by both things and other things, if the debtor fails to perform the due debt or the parties agree to realize the security right, the creditor shall realize the creditor's right in accordance with the agreement; If there is no agreement or the agreement is unclear, and the debtor provides the security of the property himself, the creditor shall give priority to the realization of the creditor's right with respect to the security of the property; Where a third party provides a property guarantee, the creditor may realize the creditor's right with respect to the property guarantee, or may require the guarantor to assume the guarantee responsibility. The third party providing the guarantee shall have the right to recover from the debtor after assuming the guarantee responsibility.