Guarantee methods for private lending: personal guarantee, property guarantee, and a combination of the two; or it can also be divided into mortgage guarantee; pledge guarantee; and other methods with guarantee functions, such as Lien, payment of deposit, etc. Legal basis: Article 388 of the Civil Code. 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 subordinate contract to the main creditor's rights and debts contract. If the principal creditor's rights and debt contract is invalid, the guarantee contract shall be invalid, except as 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 392 If the guaranteed creditor's rights are guaranteed by both physical and human guarantees, and the debtor fails to perform the due debt or the circumstances agreed by the parties to realize the security rights occur, the creditor shall realize the creditor's rights in accordance with the agreement; there is no agreement or agreement It is not clear that if the debtor himself provides a security for the property, the creditor shall first realize his claim on the security of the property; if a third party provides a security for the property, the creditor may realize his claim on the security of the property or request the guarantor to bear the guarantee liability. After the third party providing the guarantee assumes the guarantee liability, it has the right to recover from the debtor.

Legal Basis

Article 388 of the "People's Republic of China and Civil Code" The relationship between the guarantee contract and the main contract shall be established in accordance with this law and the main contract. Enter into a guarantee contract in accordance with the provisions of other laws. Guarantee contracts include mortgage contracts, pledge contracts and other contracts with guarantee functions. The guarantee contract is a subordinate contract to the main creditor's rights and debts contract. If the principal creditor's rights and debt contract is invalid, the guarantee contract shall be invalid, except as 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 392 of the "People's Liberation Army and Civil Code of the People's Republic of China" Rules for the Implementation of Security Rights when Personal Security and Property Security Coexist. If the secured creditor's right has both physical security and personal security, If the debtor fails to perform due debts or a situation occurs that realizes the security rights as agreed by the parties, the creditor shall realize the creditor's rights in accordance with the agreement; if there is no agreement or the agreement is unclear and the debtor himself provides security for the thing, the creditor shall first realize the creditor's rights with respect to the security of the thing; If a third party provides security for the property, the creditor may realize its creditor's rights based on the security of the property, or may request the guarantor to bear the guarantee liability. After the third party providing the guarantee assumes the guarantee liability, it has the right to recover from the debtor.