Key practical points:
• It distinguishes joint-and-several suretyship from general suretyship, with general suretyship the default when unstated.
• A company's guarantee of a third party's debt requires board or shareholders' approval to be valid.
• It clarifies the effect of unregistered security and its limited enforceability against a good-faith third party.
• It addresses 'independent guarantees' and their misuse among domestic parties.
• It confirms the surety's right of recourse against the principal debtor after payment.
• Always verify the internal approvals before accepting a guarantee from a company.
🏠 Property & rentals
SPC Interpretation on the Security System of the Civil Code · Yalla China
最高人民法院关于适用《民法典》有关担保制度的解释 / SPC Interpretation on the Security System of the Civil Code
📝 Overview
A judicial interpretation (effective 1 January 2021) clarifying the rules on suretyship, real security and guarantees given by companies. It is a core reference in business finance and secured lending.
This is general information only, not legal advice. For your specific case, consult a licensed lawyer.
📜 The law text / key provisions
🕒 Updated: 16 March 2026