Legal basis: Article 63 of the Guarantee Law of People's Republic of China (PRC) * * * The chattel pledge mentioned in this law means that the debtor or a third party transfers his chattel to the creditor for possession and takes the chattel as the guarantee of the creditor's rights. When the debtor fails to perform the debt, the creditor has the right to discount the debt or give priority to compensation with the price of auction or sale of the movable property in accordance with the provisions of this law. The debtor or the third party specified in the preceding paragraph is the pledger, the creditor is the pledgee, and the transferred movable property is the pledgee.
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