Re-guarantee companies and guarantee companies are mainly engaged in different businesses, and there is no difference in others. A guarantee company is a company that manages credit risk, mainly to increase credit for enterprises, so as to provide services for enterprises to borrow money from banks or issue bonds, so as to support the development of enterprises. The main business of the re-guarantee company is to provide guarantee for the guarantee business of the guarantee company, so as to spread the risks of the guarantee company (the re-guarantee company can also engage in direct guarantee business). 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. Guarantee is a measure taken to ensure the realization of a debt, which is the main legal relationship and the guarantee is the subordinate legal relationship. Guarantee, including life insurance, property insurance and money guarantee.
Legal basis:
People's Republic of China (PRC) Civil Code
Article 114 A civil subject enjoys real rights according to law. Property right is the right that the obligee enjoys direct control and exclusiveness over the specified object according to law, including ownership, usufructuary right and security right.
Article 241 The owner has the right to establish usufructuary right and security right on his real or movable property. When exercising their rights, the usufructuary right holder and the security right holder shall not harm the rights and interests of the owner.
Article 310 Where two or more organizations or individuals jointly enjoy usufructuary right and security right, the relevant provisions of this Chapter shall apply mutatis mutandis.
Article 386 Where the debtor fails to perform the due debt or the parties agree to realize the security interest, 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.