legal ground
Article 5 of the Interpretation of the Supreme People's Court on the Application of the Relevant Guarantee System.
Where a legal person institution provides a guarantee, the people's court shall deem the guarantee contract invalid, except for the use of loans from foreign governments or international economic organizations with the approval of the State Council.
Where a residents' committee or a villagers' committee provides a guarantee, the people's court shall deem the guarantee contract invalid, except that the villagers' committee acting as the agent of the village collective economic organization according to law provides a guarantee to the outside world according to the discussion and decision procedure stipulated in the Organic Law of the Villagers' Committee.