Property that can be mortgaged under the Civil Code:,Article 395 Scope of Mortgaged PropertyThe following property that the debtor or a third party has the right to dispose of can be mortgaged:, (a) buildings and other land attachments;, (b) the right to use the land for construction;, (c) the right to use the sea;, (d) production equipment, raw materials, semi-finished goods, products;,. (v) buildings, ships and aircraft under construction; (vi) means of transportation; and (vii) other properties not prohibited from being mortgaged by laws and administrative regulations. The mortgagor may mortgage the properties listed in the preceding paragraph together. However, not all properties can be mortgaged. Article 399 of the Civil Code prohibits the mortgage of the following properties: (1) land ownership; (2) the right to use collectively owned land, such as homesteads, self-owned land, and self-owned hills, except for those that can be mortgaged as stipulated by the law; (3) educational facilities, healthcare facilities, and other facilities of public interest of nonprofit legal persons established for public interest, such as schools, kindergartens, and healthcare institutions; (iv) property whose ownership or right of use is unknown or disputed; (v) property that has been seized, impounded or supervised in accordance with the law; and (vi) other property that may not be mortgaged as stipulated by laws and administrative regulations. If the borrower is unable to provide a mortgage in full, the lender may require a third party to provide certain property to secure its claim. If the borrower fails to fulfill his debt when due, the lender may be paid in priority for the property pledged by the borrower or the third party. The items mortgaged can also be re-disposed of, which needs to be determined on a case-by-case basis, as follows:, (a) the transfer of collateral, 1, during the period of the mortgage, the mortgagor with the consent of the mortgagor to transfer the mortgaged property, should be transferred to the mortgagor of the price of the proceeds of the transfer of the debt in advance of the debt or withdrawal of the deposit. The part of the transferred price which exceeds the amount of the claim shall belong to the mortgagor, and the part which is insufficient shall be paid off by the debtor. During the period of the mortgage, the mortgagor may not transfer the mortgaged property without the consent of the mortgagee, except where the transferee extinguishes the mortgage in satisfaction of the debt. If the principal claim has been satisfied, the mortgage is also extinguished, at this time, the transfer of the collateral, naturally, without the consent of the creditor. The right of the transferee to purge the mortgage in satisfaction of the debt in order to obtain ownership of the collateral is called the right of purge. (B) the lease of the collateral,1, the conclusion of the mortgage contract before the mortgaged property has been leased, the original lease relationship is not affected by the mortgage, the mortgage is realized, the lease contract in the validity of the assignee of the collateral to continue to be effective. ,2. If the mortgaged property is leased out after the mortgage is created, the lease relationship shall not be subject to the registered mortgage, and after the mortgage is realized, the lease contract shall not be binding on the transferee. When the mortgagor leases out the mortgaged property, if the mortgagor has not informed the lessee in writing that the property has been mortgaged, the mortgagor shall be liable for the loss of the lessee caused by the leasing of the mortgaged property; and if the mortgagor has informed the lessee in writing that the property has been mortgaged, the loss of the lessee caused by the realization of the mortgage shall be borne by the lessee.
Legal Objective:Article 395 of the People's Republic of China (PRC) Code of Criminal Procedure (CCPCPC) states that the following properties, which the debtor or the third party has the right to dispose of, may be mortgaged: (1) buildings and other land attachments; (2) the right to use the land for construction; (3) the right to use the sea; (4) production equipment, raw materials, semi-finished products, and products; (5) buildings, ships, and aircrafts under construction; (6) transportation and communication facilities; (7) the right to use the sea; and (8) the right to use the sea. (v) buildings, ships, aircrafts under construction; (vi) means of transportation; (vii) other properties not prohibited from being mortgaged by laws and administrative regulations. The mortgagor can mortgage the properties listed in the preceding paragraph together.