Because the preservation measures of sealing up, distraining and freezing the property of the respondent may affect the normal production and business activities of the respondent, resulting in certain losses, in order to protect the legitimate rights and interests of the respondent, the law stipulates that if the applicant's application is wrong, the applicant shall compensate the respondent for the losses caused by improper property preservation. Therefore, when the applicant applies for property preservation, the court requires the applicant to provide economic guarantee equivalent to the value of the property applied for preservation, so as to ensure compensation for the losses caused by improper property preservation.
Property preservation guarantee is a guarantee provided by the applicant to the court to compensate the losses caused by improper property preservation when applying for property preservation.
civil code
Article 92 If a judgment cannot be executed or is difficult to be executed due to the behavior of one party or other reasons, the people's court may, upon the application of the other party, order property preservation. If the parties do not apply, the people's court may also order the adoption of property preservation measures when necessary.
When the people's court takes property preservation measures, it may order the applicant to provide a guarantee; If the applicant fails to provide a guarantee, the application shall be rejected.
Article 93 If an interested party fails to apply for property preservation immediately because of an emergency, which will cause irreparable damage to his legitimate rights and interests, he may apply to the people's court for property preservation measures before bringing a lawsuit. The applicant shall provide a guarantee. If no guarantee is provided, the application shall be rejected.
After accepting the application, the people's court must make a ruling within 48 hours; Where property preservation measures are ordered, they shall be executed immediately.
If the applicant does not bring a lawsuit within 15 days after the people's court takes the preservation measures, the people's court shall lift the property preservation.
Second, what are the types of litigation preservation guarantees?
1, cash or real estate recognition is high.
The recognition of cash is very high, which is recognized by all courts. And the cost of cash litigation preservation guarantee is the biggest. Because according to the provisions of the Civil Procedure Law, the applicant for litigation preservation needs to apply for the preservation of the property of the respondent, so how much cash should be provided?
Real estate recognition is also high. But most courts only recognize unsecured property or land. This invisibly increases the difficulty for applicants to provide such guarantees.
2. Bank guarantee is also highly recognized.
Bank guarantees, especially those of large state-owned banks, are highly recognized. Because the guarantee of bank litigation preservation is based on the bank's reputation, there is almost no possibility that the bank will not perform the guarantee responsibility.
3. Letter of guarantee issued by the guarantee company
In some areas, such as Beijing, the local high court issued detailed rules on property preservation, stipulating that qualified guarantee companies can issue corporate litigation preservation letters of guarantee. However, the scope of application of the company guarantee is narrow and can only be used in a few areas.
From the above description, it can be seen that the property preservation guarantee is the guarantee provided by the applicant to the court when applying for property preservation, and it is necessary to compensate the losses caused by improper property preservation. If you still don't understand anything, we also welcome you to consult online. We have the most professional lawyers to provide you with legal help and safeguard your legitimate rights and interests.