Legal analysis: depending on the specific situation, the counter-guarantee is now a paid guarantee. The popular explanation is that when an applicant applies for a loan from a bank, he may need a guarantor because he cannot get the loan directly for some reasons. If the applicant fails to pay off the loan for some reason during the repayment process, then the guarantor needs to continue to repay the loan to the bank, and the counter-guarantee is the right of the guarantor to recover from the lender after paying off the loan, and the counter-guarantee is also the guarantee of the guarantor's rights.
Legal basis: Civil Code of People's Republic of China (PRC).
Article 386 Where the debtor fails to perform the due debt or the security interest agreed by the parties is realized, the holder of the security interest shall have the priority to be compensated for the secured property according to law, except as otherwise provided by law.
Article 387 Where a creditor needs security in order to ensure the realization of his creditor's rights in civil activities such as lending, buying and selling, he may establish a security interest in accordance with the provisions of this Law and other laws.