The Supreme People's Court's Interpretation on Several Issues Concerning the Application of the Guarantee Law of People's Republic of China (PRC) Article 71 If the principal creditor's rights are not fully paid off, the mortgagee may exercise the mortgage right over all mortgaged properties.

Where the mortgaged property is divided or partially transferred, the mortgagee may exercise the mortgage right over the divided or transferred mortgaged property.

According to the law, if the principal creditor's rights are not fully paid off, the mortgagee may exercise the mortgage right over all the collateral. Therefore, the bank has the right to refuse your application for withdrawing part of the collateral.