If the company's property has been mortgaged at the time of bank loan, the bank has the priority to be compensated for the mortgaged property. In other words, the proceeds from the auction of mortgaged property by the court are also given priority to the mortgaged bank, and the remaining property belongs to bankruptcy property.
Legal basis: Article 33 of the Guarantee Law of People's Republic of China (PRC) * * * The term "mortgage" as mentioned in this law means that the debtor or a third party does not transfer the possession of the property listed in Article 34 of this law, but takes the property as the guarantee of the creditor's rights. When the debtor fails to perform his debts, the creditor shall have the right to discount or give priority to compensation with the price of auction or sale of property in accordance with the provisions of this law.