Legal basis: Article 420 of the Civil Law of People's Republic of China (PRC) stipulates that if the debtor or a third party provides the secured property for the performance of the secured debt, and the debtor fails to perform the due debt or realize the mortgage right according to the agreement of the parties, the mortgagee has the right to be paid in priority for the secured property within the maximum amount of creditor's rights. The creditor's rights before the establishment of the maximum mortgage may be transferred to the creditor's rights secured by the maximum mortgage with the consent of the parties.
Article 193rd of the Criminal Law of People's Republic of China (PRC) commits one of the following acts. Whoever defrauds a bank or other financial institution of loans for the purpose of illegal possession, if the amount is relatively large, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also be fined not less than 20,000 yuan but not more than 200,000 yuan; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than ten years, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan; If the amount is especially huge or there are other especially serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan or confiscated property:
(a) fabricating false reasons such as introducing funds and projects;
(two) the use of false economic contracts;
(3) using false documents;
(four) the use of false proof of property rights as a guarantee or repeated guarantee beyond the value of collateral;
(5) obtaining loans by other means.