Legal basis: Civil Code of People's Republic of China (PRC).
Article 394 Where the debtor or a third party mortgages the property to the creditor to guarantee the performance of the debt without transferring the property, and the debtor fails to perform the due debt or realize the mortgage right according to the agreement of the parties, the creditor has the right to be paid in priority 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.
Article 395 The following property that the debtor or a third party has the right to dispose of may be mortgaged:
(a) buildings and other land attachments;
(2) The right to use construction land;
(3) the right to use the sea area;
(4) Production equipment, raw materials, semi-finished products and products;
(5) Buildings, ships and aircraft under construction;
(6) means of transportation;
(seven) other property not prohibited by laws and administrative regulations.
The mortgagor may mortgage the property listed in the preceding paragraph together.
Article 397 Where a building is mortgaged, the right to use the construction land within the occupied area of the building shall be mortgaged together. Where the right to use construction land is mortgaged, the buildings on the land shall be mortgaged together.
If the mortgagor fails to jointly mortgage in accordance with the provisions of the preceding paragraph, the mortgaged property shall be regarded as joint mortgage.