Frequently Asked Questions

26 2026-10

Is the assignment and guarantee agreement valid?

The assignment and guarantee agreement is valid as a principle of guarantee arrangement, but the provisions of pledging and hypothecation that stipulate that the creditor shall own the pledged assets if the debtor fails to repay the loan on time are invalid, and the creditor can only receive priority repayment in accordance with the law.

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26 2026-10

How should we deal with the frozen pledged equity?

The pledged equity is frozen by the court, and the pledgee's right of priority repayment is not extinguished, but it must be disposed of through the execution procedure; the pledgee shall declare his/her creditor's rights and claim priority repayment to avoid being repaid privately or losing the right to distribution.

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26 2026-10

How to determine the scope of property in a floating mortgage?

The scope of the floating mortgage property shall be determined based on the production equipment, raw materials, semi-finished products, and products of the enterprise at the time the mortgage property is determined. It shall be determined in accordance with the Civil Code when the statutory circumstances arise, and it shall not be enforceable against bona fide third parties without registration.

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26 2026-10

What procedures must be followed to enforce a mortgage?

The mortgage right can be realized through agreement on discount, auction, or sale. If no agreement can be reached, the special procedure for realizing the security right or litigation can be initiated, and the court will auction or sell the secured property according to law.

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26 2026-10

Can the mortgaged house be directly auctioned by the court?

After the mortgaged house is confirmed through litigation or the process of realizing the right of security, the court shall seal it up, appraise it, and auction it off in accordance with the law, and ensure that the person subject to enforcement and his/her family members have the necessary living quarters. The specific provisions shall be subject to the currently effective laws and regulations.

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26 2026-10

In bankruptcy liquidation, do shareholders need to make up for their unpaid contributions?

In the bankruptcy liquidation process, shareholders only need to make up for their contributions under statutory circumstances such as not having fully fulfilled their obligations to contribute. According to Article 35 of the Enterprise Bankruptcy Law, there is no time limit for this; those who have already paid in full or whose failure to pay is due to unjustifiable reasons do not need to make up...

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26 2026-10

Does the village committee have the right to withhold the land expropriation compensation funds?

The village committee has no right to withhold the land expropriation compensation funds without authorization; the land compensation fees belong to the collective, and the resettlement assistance fees belong to the resettled people. In the event of withholding, they can apply for administrative reconsideration or litigation, and apply for open village affairs to protect their rights.

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26 2026-10

How can we identify problems in a demolition assessment report?

You can check the selection of institutions, the method of evaluating at a specific point in time, the determination of the nature of the area, the comparison of market prices, and the right to review the evaluation results by reviewing the evaluation report. If you are not satisfied with the evaluation results, you can request a review or appraisal.

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