Guaranty Law of the People's Republic of China
1995-06-30
Order of the President of the People's Republic of China No. 50

The Guaranty Law of the People's Republic of China, adopted at the 14th Meeting of the Standing Committee of the Eighth National People's Congress of the People's Republic of China on June 30, 1995, is hereby promulgated and shall enter into force as of October 1, 1995.

Jiang Zemin
President of the People's Republic of China

June 30, 1995

Content
Chapter 1 General Provisions
Chapter 2 Suretyship
Section 1 Suretyship and Surety
Section 2 Suretyship Contract and Modes of Suretyship
Section 3 Suretyship Liability
Chapter 3 Mortgage
Section 1 Mortgage and Mortgaged Property
Section 2 Mortgage Contract and Registration of Mortgaged Property
Section 3 Effect of Mortgage
Section 4 Enforcement of Mortgage Right
Section 5 Mortgage of Maximum Amount
Chapter 4 Pledge
Section 1 Pledge of Movables
Section 2 Pledge of Rights
Chapter 5 Lien
Chapter 6 Deposit
Chapter 7 Supplementary Provisions

Chapter 1 General Provisions
Article 1
This Law is enacted with a view to promoting the accommodation of funds and the circulation of commodities, ensuring the enforcement of creditor's rights and developing the socialist market economy.

Article 2
This Law is enacted with a view to promoting the accommodation of funds and the circulation of commodities, ensuring the enforcement of creditor's rights and developing the socialist market economy.

Article 3
In guaranty activities, the principles of equality, voluntariness, fairness, honesty and credibility shall be observed.

Article 4
Where a third party provides a guaranty to creditor for a debtor, the third party may require the debtor to provide him with a counter-guaranty. The provisions on guaranty in this Law shall apply to the counter-guaranty.

Article 5
A guaranty contract is an ancillary contract of the principal contract. If the principal contract is null and void, the guaranty contract shall be null and void, accordingly. Where it is otherwise agreed in the guaranty contract, such agreement shall prevail. If a guaranty contract is determined to be null and void, the debtor, the guarantor or the creditor who is in default shall bear civil liability according to their respective fault.