First of all, it must be clear that the land use right of "allocated land" belongs to the state and cannot be transferred. I'm afraid you didn't carefully read the contents of the "two certificates" when you participated in the auction, especially the nature of the land indicated on the state-owned land use right certificate. Property right certificate includes two certificates: land use right certificate and house ownership certificate. The nature of land use right is divided into "allocation" and "transfer". The "allocated" land is directly allocated to users by the state, and there is no need to pay relevant land fees. "Transfer" land refers to the state-owned land that is transferred through public bidding and paid the land transfer fee. I'm afraid you just bought the property right of the factory by bidding. You didn't pay the land transfer fee at that time, so the land use right was still "allocated". I wonder if it was the state-owned assets management department that presided over the auction at that time. To solve this problem, you can negotiate with the local state-owned assets management department or land management department to see if you can pay the land leasing fee for the land occupied by the factory, and then change the nature of the land on the land certificate to "transfer". So you can use the factory as collateral.

The characteristics of land use with socialist characteristics also refer to the distribution of land use rights. According to Article 2 of the Interim Measures for the Administration of Allocated Land Use Rights: Allocated land use rights refer to the state-owned land use rights obtained by land users in various ways except transferring land use rights. Article 23 of People's Republic of China (PRC) City Real Estate Management Law stipulates the way to obtain the allocated land use right: "The allocated land use right refers to the behavior that the people's government at or above the county level approves the land users to use the land after paying the compensation and resettlement fees, or delivers the land use right to the land users for free. If the land use right is obtained by allocation in accordance with the provisions of this Law, there is no restriction on the term of use unless otherwise provided by laws and administrative regulations. "

This provision is the most authoritative definition of the concept of land use right allocation at the legislative level so far.

Article 54 of the Land Management Law of the People's Republic of China and Article 23 of the People's Republic of China (PRC) Urban Real Estate Management Law stipulate that the following construction land can be obtained by allocation with the approval of the people's government at or above the county level according to law:

(a) land for state organs and military use;

(two) urban infrastructure and public welfare land;

(3) Land for energy, transportation, water conservancy and other infrastructure supported by the state;

(four) other land as prescribed by laws and administrative regulations.