Legal analysis: (1) Party A has the ownership or legal disposal right of the mortgaged property listed in Article 1 of this Agreement; (2) There are no rights burdens such as security interest (mortgage, pledge) or usufructuary right for the debt-paying property listed in Article 1 of this Agreement; (3) Party A is not involved in any litigation, and no third party raises any objection to the ownership and rights burden of the above-mentioned debt-paying property; (4) Party A has paid all taxes and fees arising from the mortgaged property, and there is no breach of contract; (5) The item of paying debts in kind has been approved by Party A's board of directors (according to Party A's articles of association, this item can be deleted if it does not need to be approved by Party A's board of directors); (VI) Party A has submitted the debt repayment in kind to the competent authorities and relevant government agencies for approval;
Legal basis: Article 394 of the Civil Law of People's Republic of China (PRC) guarantees the performance of debts. If the debtor or a third party mortgages the property to the creditor without transferring the possession of the property, the debtor fails to perform the due debt or the creditor has the right to receive priority compensation for the property. The debtor or the third party specified in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property that provides guarantee is the mortgaged property.