What are the types of security interests and what are the types of security interests?

A security interest is a property right corresponding to a usufructuary right, which refers to a right created to ensure the realization of a creditor's right and to directly acquire or dispose of the exchange value of a specific property. The purpose of a security interest is to secure the realization of a claim, so the existence of a security interest itself has no actual value to the right holder. Only when the debtor fails to perform the debt within the time limit, and the obligee realizes its security interest, that is, the right is extinguished, does the obligee become the owner of the collateral and obtains the value of the collateral.

According to China's Security Law, security interests are generally divided into mortgage rights, pledge rights and lien rights. Mortgage: The debtor or a third party has the right to take advantage of his specific property as security for the performance of the debt without transferring possession, and when the debtor fails to perform the debt, the debtor has the right to receive priority from the value of the mortgaged property.

Pledge: also known as pledge, refers to the transfer of the movable property or rights of the debtor or a third party to the possession of the creditor in order to guarantee the performance of the debt, and when the debtor fails to perform the debt, the creditor has the right to be repaid in priority for the property in its possession. Liens:

It refers to the right of the creditor to take possession of the debtor's property due to the contractual relationship, and to retain the property in accordance with the law when the debtor fails to perform the debt within the time limit agreed in the contract, and to receive priority payment for the price of the property discounted, auctioned or sold.

Real-world problems. Zhu borrowed 150,000 yuan from Qin and used his car as a guarantee, but when the two parties signed the guarantee contract, they did not agree on the scope of the guarantee of the car, so what is the scope of the guarantee of the car?

Lawyer answers. According to the Property Law, the scope of security of a security interest includes the principal claim and its interest, liquidated damages, damages, and expenses for the custody of the secured property and the realization of the security interest. Where the parties agree otherwise, follow the agreement.

Links to legal provisions. Property Law of the People's Republic of China

Article 173 The scope of security for a security interest includes the principal creditor's right and its interest, liquidated damages, damages, and expenses for keeping the secured property and realizing the security interest. Where the parties agree otherwise, follow the agreement.

Legal analysis: There are three types of security interests, specifically mortgages, pledges and liens.

According to the first paragraph of Article 394 of the Civil Code implemented in 2021, if the debtor or a third party does not transfer the possession of the property and mortgages the property to the creditor in order to guarantee the performance of the debt, the debtor fails to perform the due debt or the mortgage rights are realized as agreed by the parties, and the creditor has the right to be repaid in priority for the property.

Paragraph 1 of Article 425 stipulates that if the debtor or a third party gives possession of the movable property to the creditor in order to guarantee the performance of the debt, the creditor shall have the right to be repaid in priority in respect of the movable property if the debtor fails to perform the due debt or the pledge is realized as agreed by the parties.

The first paragraph of Article 447 stipulates that if the debtor fails to perform the debts due, the repentant creditor may retain the movable property of the debtor that is already in legal possession and has the right to be repaid in priority in respect of the movable property.

Legal basis: Civil Code of the People's Republic of China

Article 394:Where the debtor or a third party mortgages the property to the creditor without transferring the possession of the property in order to guarantee the performance of the debt, and the debtor fails to perform the due debt or the mortgage rights are realized as agreed by the parties, the creditor has the right to be repaid in priority for the property.

Article 425 Where the debtor or a third party pledges its movable property to the creditor for the purpose of guaranteeing the performance of the debt, and the debtor fails to perform the duties before the debt is due, or the creditor has the right to be repaid in priority in respect of the movable property in the event that the parties agree to realize the pledge.

Article 447:If the debtor fails to perform the debts due, the creditor may retain the debtor's movable property that is already in lawful possession and has the right to receive priority in repayment of the movable property.

There are three types of security interests, specifically mortgages, pledges and liens. According to the first paragraph of Article 394 of the Civil Code, if the debtor or a third party does not transfer the possession of the property and mortgages the property to the creditor in order to guarantee the performance of the debt, the debtor shall have the right to be repaid in priority in respect of the property if the debtor fails to perform the due debt or the mortgage rights are realized as agreed by the parties. Paragraph 1 of Article 425 stipulates that if the debtor or a third party pledges its movable property to the creditor for the possession of the debtor in order to guarantee the performance of the debt, and the debtor fails to perform the due debt or the pledge is realized as agreed by the parties, the creditor has the right to be repaid in priority for the movable property.

Paragraph 1 of Article 447 stipulates that if the debtor fails to perform the debts due, the creditor may retain the debtor's movable property that is already in lawful possession and has the right to be repaid in priority for the movable property. Article 394 of the Civil Code provides that if the debtor or a third party does not transfer possession of the property and mortgages the property to the creditor in order to guarantee the performance of the debt, the debtor shall have the right to be repaid in priority in respect of the property if the debtor fails to perform the due debt or the mortgage right is realized as agreed by the parties. Article 425 of the Civil Code provides that in order to guarantee the performance of the debt, if the debtor or a third party pledges its movable property to the creditor for possession, and the debtor fails to perform the due debt or the parties agree to realize the pledge, the creditor has the right to be repaid in priority for the movable property.

Article 447 of the Civil Code If the debtor fails to perform the debts due, the creditor may retain the debtor's movable property that has been lawfully in possession and has the right to be repaid in priority for the movable property.