If a debtor isn’t able to pay off their debt according to the contract, we may ask them to make a written commitment to pay in instalments, or to offer a guarantee or a debt repayment plan. Such a commitment is valid and effective whether it’s authenticated by a notary or not. The notarial procedure can reinforce the authority and legitimacy of commitments, but this is rarely practised in China.
When a guarantee, pledge, or a mortgage is established, a written contract is necessary. When a mortgage is established on a) buildings and other objects fixed to land, b) the right to use construction land, or c) the right over contracted management of such land as barren land, the mortgage registration will be examined. The mortgage right will be established as of the date of registration.
(End of chapter 3 - Safeguarding measures)