Funds can be used as loan collateral.
Taking the Industrial and Commercial Bank of China (ICBC) as an example, according to Article 16 of the Administrative Measures for Individual Housing Loans of ICBC, mortgage loans refer to loans granted by the lender in accordance with the legal mortgage mode using the property of the borrower or a third party as collateral. The following properties can be used as collaterals:
(1) properties and ground fixtures that the mortgagor has the right to dispose of;
(2) state-owned land use rights acquired by the mortgagor in accordance with the law;
(3) other properties recognized by the lender.
The following properties may not be used as collateral:
(i) land ownership;
(ii) properties with unknown or disputed ownership or use rights;
(iii) properties that cannot be enforced or disposed of;
(iv) properties that have been mortgaged;
(v) properties that have been legally seized, detained, supervised, or subject to other (v) Property that has been seized, detained, supervised or subjected to other security or compulsory measures;
(vi) Other property that may not be mortgaged in accordance with the law.
Expanded Information:
Article 37 of the Guarantee Law of the People's Republic of China (PRC) states that the following properties shall not be mortgaged:
The following properties shall not be mortgaged:
The following properties shall not be mortgaged Property may not be mortgaged:
(1) Ownership of land:
(2) Collectively-owned land use rights such as arable land, homesteads, self-retained land, and self-retained mountains, except as provided for in Paragraph (5) of Article 34 and Paragraph 3 of Article 36 of this Law;
(3) Educational facilities of schools, kindergartens, hospitals, and other public welfare oriented institutions and social organizations, medical and health facilities and other facilities for public welfare;
(4) property whose ownership or right of use is unknown or disputed;
(5) property that has been seized, detained or supervised in accordance with the law;
(6) other property that may not be mortgaged in accordance with the law.
ICBC - Administrative Measures for ICBC Personal Housing Loans