Legal Basis
Article 420 of the People's Republic of China*** and the National Code The definition of the maximum amount of mortgage is to guarantee the performance of the debt, the debtor or a third party to the debtor or the third party to a certain period of time will be consecutively incurred claims to provide secured property, the debtor does not perform the maturity of the debt or the occurrence of the parties to agree to the realization of the mortgage, the mortgagee has the right to within the limit of the maximum amount of claims on the secured property priority compensation. The mortgagee has the right to be paid in priority for the secured property within the limit of the maximum claim. Claims that existed before the establishment of the maximum mortgage may be transferred to the scope of claims secured by the maximum mortgage with the consent of the parties.
Article 587 of the Chinese People's **** and National Code: The penalty of deposit, if the debtor fulfills the debt, the deposit shall be set off against the price or recovered. The party who paid the deposit does not perform the debt or perform the debt does not meet the agreement, resulting in failure to achieve the purpose of the contract, no right to request the return of the deposit; the party who received the deposit does not perform the debt or perform the debt does not meet the agreement, resulting in failure to achieve the purpose of the contract, the deposit shall be doubled back.