According to Article 33 of the Contract Law, mortgage means that the debtor or a third party does not transfer the possession of the property listed in Article 34 of this Law, and takes the property as the guarantee of creditor's rights. When the debtor fails to perform the debt, the creditor has the right to discount the debt or give priority to compensation with the price of auction or sale of the property in accordance with the provisions of this law. The debtor or the third party specified in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property provided as guarantee is the collateral.

The mortgagor can be a borrower or a third party.