Mortgage is ultimately to dispose of the subject matter to its price priority compensation, so in principle, transferable property can be mortgaged, non-transferable property can not be mortgaged. According to the provisions of the Security Law, the following properties may not be mortgaged:
(a) Land ownership.
(ii) Land use rights of collectively owned land such as arable land, residential land, self-reserved land, and self-reserved land, except where specifically provided for by law.
Collectively owned land use rights cannot be mortgaged, but there are two exceptions as follows:
1. The land use rights of barren mountains, barren ditches, barren hills, barren beaches and other barren land contracted by the mortgagor in accordance with the law and agreed to be mortgaged by the contractor can be mortgaged.
2. The land use right of a township or village enterprise may not be mortgaged separately, but if a mortgage is taken on a building such as a factory building of a township or village enterprise, the land use right within the area of its occupancy may be mortgaged at the same time, but the nature of the land use right still cannot be changed in the future.
(3) Educational facilities, medical and health care facilities and other social welfare facilities of institutions and social organizations such as schools, kindergartens and hospitals, etc., which are intended for public welfare.
Expanded Information:
Property that can be mortgaged in accordance with the law are mainly:
1. Houses and other aboveground fixtures owned by the mortgagor or entitled to dispose of in accordance with the law.
2. Machines, means of transportation and other property owned by the mortgagor or entitled to disposal in accordance with the law.
3. Land use rights of barren mountains, barren ditches and other barren lands contracted by the mortgagor in accordance with the law and agreed to be mortgaged by the contractor.
4. Buildings authorized by law but not yet constructed or under construction.
Reference: Baidu Encyclopedia-Asset Mortgage