The guarantor is not qualified to be a guarantor, and under what circumstances cannot be a guarantor

Can I be a guarantor?

Guarantor Eligibility Requirements.

First, a legal person, other organization or citizen who has the ability to repay debts on behalf of the company may act as a guarantor. However, if a legal person, other organization or natural person who does not have full solvency enters into a guarantee contract in the capacity of a guarantor and then claims to be exempted from the guarantee liability on the grounds that he or she does not have the ability to compensate, the people's court will not support it.

Second, according to the relevant provisions of the General Principles of the Civil Law, individual industrial and commercial households and rural contracted business households are a special form of citizens. Therefore, the citizens who are guarantors can also be individual industrial and commercial households and rural contracted business households.

Third, those who can act as guarantors include: sole proprietorships and partnerships that have registered and obtained business licenses in accordance with the law; Joint ventures that have been registered and licensed in accordance with the law; Chinese-foreign cooperative joint ventures that have registered and obtained business licenses in accordance with the law; Social groups that have been approved and registered by the civil affairs departments; Township, street, and village-run enterprises that have been approved to register and receive business licenses.

Fourth, if a branch of an enterprise legal person provides a guarantee without the written authorization of the legal person, the guarantee contract shall be invalid. If the functional department of the enterprise legal person provides a guarantee, the guarantee contract shall be invalid.

Fifth, public institutions or social organizations for the purpose of public welfare shall not act as guarantors, and if a public institution or social organization engaged in business activities is the guarantor, the guarantee contract signed by the public institution or social organization engaged in business activities shall be deemed valid if there are no other circumstances that cause the guarantee contract to be invalid.

Sixth, in the process of accepting loans provided by foreign countries or international economic organizations, state organs can act as guarantors after being approved by foreign countries, and are not allowed to act as guarantors under other circumstances.

1. Husband and wife cannot guarantee each other.

2. Persons with household registration outside the place of loan cannot be used as a guarantee.

3. There is no guarantee for economic **.

4. Retired personnel cannot be used as a guarantee.

5. The state clearly stipulates that a person cannot become a guarantor.

Legal basis: Article 7 of the Guarantee Law on the qualifications and scope of the guarantor.

Legal persons, other organizations, or citizens who have the ability to repay debts on their behalf may act as guarantors.

Article 8 Prohibitions and Exceptions for State Organs as Guarantors.

State organs shall not be guarantors, except for those who have been approved to use loans from foreign countries or international economic organizations for on-lending.

Article 9: It is prohibited for a public interest legal person to act as a guarantor.

Schools, kindergartens, hospitals, and other public institutions and social organizations for the purpose of public interest must not be guarantors.

Article 10 Prohibitions and exceptions for branches and functional departments of enterprise legal persons to act as guarantors.

The branches and functional departments of an enterprise legal person must not be guarantors. Where a branch of an enterprise legal person has written authorization from the legal person, it may provide a guarantee within the scope of authorization.

Since the Civil Code came into effect on January 1, 2021, it is recommended to refer to the provisions of the Civil Code for the conflicts between the above analysis and the Civil Code.

The circumstances that cannot become a guarantor are: the legal person of the government agency shall not be the guarantor, except for those who have been approved to use foreign ** or international economic organization loans for on-lending. Non-profit legal persons and unincorporated organizations for the purpose of the public interest must not be guarantors.

Circumstances in which a guarantee cannot be used as a guarantor: State organs, public welfare institutions, social organizations, branches and functional departments of enterprise legal persons shall not act as guarantors to provide guarantees for others, and branches of enterprise legal persons may provide guarantees within the scope of authorization if they are authorized in writing by the legal person.

Circumstances in which a guarantee cannot be used as a guarantor: State organs, public welfare institutions, social organizations, branches and functional departments of enterprise legal persons shall not act as guarantors to provide guarantees for others, and branches of enterprise legal persons may provide guarantees within the scope of authorization if they are authorized in writing by the legal person. Non-residents cannot act as guarantors for loans, and usually the bank's household registration requirements for both the borrower and the guarantor are the same, and if the guarantor is a foreign account, there is also a huge repayment risk for the bank.

A person who does not have financial ** cannot be a guarantor, because the responsibility of the guarantor is that when the borrower is unable to repay the loan on time, the guarantor has the responsibility and obligation to help the borrower repay the loan. Retirees cannot guarantee loans to others, and generally speaking, people who have retired are not eligible for bank guarantees, both financially and age.

There are several situations in which you cannot guarantee a loan to others:

1. The relationship with the lender is husband and wife, because the two are in the same economy, if one person is unable to repay the loan, and the other person is also unable to repay the loan, then the guarantee loses its meaning.

2. Non-local people cannot be used as guarantors for loans, usually the bank has the same household registration requirements for the borrower and the guarantor, and if the guarantor is a foreign account, there is also a huge repayment risk for the bank.

3. A person who does not have economic ** cannot be a guarantor, because the responsibility of the guarantor is that when the borrower is unable to repay the loan on time, the guarantor has the responsibility and obligation to help the borrower repay the loan.

4. Retirees cannot guarantee loans to others, and generally speaking, people who have retired do not meet the conditions of bank guarantee in terms of economy and age.

Legal basis

Civil Code of the People's Republic of China

Article 387:Where a creditor needs security in order to ensure the realization of its creditor's rights in civil activities such as lending or trading, it may create a security interest in accordance with the provisions of this Law and other laws.

Where a third party provides security to the creditor for the debtor, the debtor may be required to provide a counter-guarantee. Counter-guarantees shall be governed by the provisions of this Law and other laws.

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.

The national slag government shall not be the guarantor, except for those approved by the government for the use of foreign or international economic organization loans for on-lending; Schools, kindergartens, hospitals, and other public institutions and social organizations for the purpose of public interest must not be guarantors. 2. If a public institution or social organization engaged in business activities such as Orange Land is the guarantor, if there are no other circumstances that cause the guarantee contract to be invalid, the guarantee contract signed by Wu Zheng shall be deemed valid.

Legal basis: According to Article 683 of the Civil Code of the People's Republic of China, a legal person of an organ shall not be a guarantor, except for those who have been approved to use a loan from a foreign country or an international economic organization for on-lending.

Non-profit legal persons and unincorporated organizations for the purpose of the public interest must not be guarantors.

A guarantor cannot be a guarantor under the following circumstances: 1. The relationship with the lender is husband and wife. 2. Non-local hukou holders.

3. Those who are unable to take care of themselves and have no income, do not have the ability to repay the principal and interest for others. 4. Retired personnel. 5. Failure to pass the review for other reasons.

According to the Civil Code, if a third party provides a guarantee to the creditor for the debtor, the debtor may be required to provide a counter-guarantee. Counter-guarantees shall be governed by the provisions of this Law and other laws. Article 388 A security contract shall be concluded in accordance with the provisions of this Law and other laws for the establishment of a security interest.

Guarantee contracts include mortgage contracts, pledge contracts, and other contracts with security functions. The guarantee contract is a subordinate contract of the main creditor's rights and debts contract. If the principal creditor's rights and debts contract is invalid, the guarantee contract shall be invalid, except as otherwise provided by law.

After the guarantee contract is confirmed to be invalid, if the debtor, the guarantor and the creditor are at fault, they shall each bear the corresponding civil liability according to their fault.