Civil Procedure Law – Cases for Exercise of Security Interests

(The following clauses are selected from The Arbitration Law of the People's Republic of China translated by Robert Zhang and Steve Lee, international lawyers in Shanghai, and published by Kindle Unlimited.)

Article 203 Where the holder of a security interest or any other person who is entitled to exercise a security interest requests to exercise the security interest, a petition shall be filed with the lowest people's court in the jurisdiction where the collateral is located or the security interest is registered in accordance with the Civil Code and other applicable laws.

Article 204 After accepting a petition to exercise a security interest, the people's court shall review the petition and make an order to sell the collateral by auction or on consignment if it holds that the petition complies with the law, in which case the petitioner may file a petition for enforcement of the order with the people's court, or make an order to dismiss the petition if it holds that the petition does not comply with the law, in which case the petitioner may file a lawsuit with the people's court.