Beijing, China - Feb 23, 2018 (CCTV - No access Chinese mainland)
1. Press conference held by Supreme People's Court (SPC) in progress
2. Various of reporters reading documents
3. SOUNDBITE (Chinese) Meng Xiang, chief, Enforcement Bureau, Supreme People's Court:
"The interpretation clearly provides that the people's courts may, according to the application for execution, give a direct ruling to seize the mortgage property or a guarantor's property, but it is forbidden to alter the guarantor and make it an additional guarantor subject to enforcement."

4. Press conference held by Supreme People's Court
5. Various of reporters reading documents

FILE: China - Exact Date and Location Unknown (CCTV - No access Chinese mainland)
6. Courthouse
7. Various of court officers seizing properties
8. Various of cars used by people's courts

China's Supreme People's Court (SPC) issued a judicial interpretation on enforcing the guarantee letters to unify its application.

The interpretation is to take effect on March 1.

According to Meng Xiang, chief of the Enforcement Bureau of the SPC, the enforcement of guarantee is an important system provided in Article 231 of the civil procedure law. It can, on the one hand, increase the possibility of realizing the creditor's rights and on the other hand can also properly extend the term of debtor's debt performance, helping the debtors adjust its production and operation, raise funds and improve its debt servicing abilities and protect the lawful rights and interests of the debtors. It is of positive significance in stabilizing the economic development. However, as, during its implementation, the people's courts have different practices due to ambiguous terms it is necessary to work out a unified application.

According to the civil procedure law, if a person subject to enforcement fails to fulfill his or her obligations after a deadline expires, the people's courts may seize his or her mortgage property or a guarantor's property.

"The interpretation clearly provides that the people's courts may, according to the application for execution, give a direct ruling to seize the mortgage property or a guarantor's property, but it is forbidden to alter the guarantor and make it an additional guarantor subject to enforcement," said Meng.