Legal analysis: Guarantee refers to the system that the law urges the debtor to perform the debt with the creditor's rights or specific property of the debtor or the third party to ensure that the specific creditor realizes the creditor's rights. The guarantee is usually signed by both parties. Guarantee activities shall follow the principles of equality, voluntariness, fairness, honesty and credibility.
Legal basis: Article 386 of the Civil Code of People's Republic of China (PRC) * * * If the debtor fails to perform the due debt or the parties agree to realize the security interest, the holder of the security interest shall enjoy the right of priority compensation for the secured property according to law, except as otherwise provided by law.