The provisions on equity pledge in the Civil Code are that the creditor is the pledgee, and equity pledge falls within the scope of rights pledge, which means that the debtor or a third party pledges the right to dispose to the creditor for possession. If the debtor fails to perform its due obligations, the creditor has the right to receive priority payment for the pledged property.

Legal Basis

Article 440 of the Civil Code

The following rights that the debtor or a third party has the right to dispose of may be pledged:

(1) Money orders, cashier's checks, checks;

(2) Bonds, deposit certificates;

(3) Warehouse receipts, bills of lading;

(5) Transferable property rights in intellectual property rights such as registered trademark rights, patent rights, copyrights, etc.;

( 6) Existing and future accounts receivable;

(7) Other property rights that can be pledged according to laws and administrative regulations.