【First-Class Constructor Project Management Practice Questions】015 Debt Guarantee Model
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The debtor does not transfer possession of the property in question, using that property as security for the debt； When the debtor fails to fulfill his obligations, the creditor has the right, in accordance with the law, to reduce the value of such property or sell it through auction, and to be compensated first from the proceeds of such sale. This type of guarantee is a （ ） guarantee. A. Guarantee B. Pledge C. Mortgage D. Lien
【Standard Answer】C 【Expert Explanation】Mortgage refers to the practice where the debtor or a third party does not transfer possession of the property they own, but uses that property as collateral for a debt. When the debtor fails to fulfill its obligations, the creditor has the right, in accordance with the law, to be compensated preferentially from the proceeds resulting from the discounting of such property or from its auction or sale.