CONTRACTS SHOULD BE SIGNED BETWEEN CREDIT INSTITUTIONS AND CUSTOMERS IN THE CASES OF SECURITY ASSETS NOT OF LOANS

Abstract

When taking out a loan, usually the borrower will use his or her assets to secure the repayment of the debt. However, in many cases, in fact, the property to secure the debt repayment obligation is not of the borrower's. The current legal regulations for this case are not clear and consistent in legal documents. This leads to many legal risks for credit institutions and property owners. The article analyzes the legal basis to determine the contracts that need to be concluded in case the collateral is not of the borrower's, provides comments on the legality of the actual signed contracts in this case; Based on this, the author also proposes some recommendations and sample contracts that should be concluded in case the collateral is not of the borrower's.

Keywords: guarantee, third-party mortgage contract, third-party collateral.