Article1Duringtheexecutionprocess,afterthepropertyofthepersonagainstwhomajudgmentororderisbeingexecutedissealedup,distrainedorfrozen,thepeople'scourtshalltimelyauctionit,sellitoffortakeotherexecutionmeasures.
Article2Whenthepeople'scourtsellsatcurrentpricethesealedup,distrainedorfrozenproperty,auctionshallbeitsfirstchoiceunlessitisotherwiseprovidedforinanylaworjudicialinterpretation.
Article3Whenthepeople'scourtauctionsthepropertyofthepersonagainstwhomajudgmentororderisbeingexecuted,itshallentrustaneligibleauctioninstitutiontodoit,anditshallconductsupervisionovertheauctionconductedbytheauctioninstitutionunlessitisotherprovidedforinanylaworjudicialinterpretation.
Article4Thepeople'scourtshallentrustaneligibleappraisalinstitutiontoappraisethepriceoftheto-be-auctionedproperty.Ifthevalueofthepropertyisminororiseasytobesetthroughacommonapproach,noappraisalmayberequired.Ifbothpartiesconcernedorotherexecutingcreditorsapplyfornoappraisal,thepeople'scourtshallgrantpermission.Ifthestockrightofthepersonagainstwhomajudgmentororderisbeingexecutedisappraised,thepeople'scourtmayordertheenterpriseconcernedtoprovidetheaccountingstatementsandothermaterials.Iftheenterpriseconcernedrefusestodoso,thepeople'scourtmayobtainthembycompulsoryexecution.
[Note:Paragraph1ofArticle4isamendedtoread:“Thepeople'scourtmayauthorizeaneligibleappraisalinstitutiontoappraisethepriceoftheto-be-auctionedproperty.Appraisalisnotrequiredifthevalueofthepropertyisrelativelyloworiseasytobedeterminedthroughcommonmethods.”]
Article5Theappraisalinstitutionshallbeexaminedanddeterminedbythepeople'scourt,afterthepartiesconcernedhaveagreedupontheappraisalinstitution.Ifthepartiesconcernedfailtoreachanagreement,theappraisalinstitutionshallberandomlysortedoutfromthebeadrolloftheappraisalinstitutionsasdeterminedbytheexecutingpeople'scourtorbythepeople'scourtoftheplacewherethepropertyofthepersonagainstwhomajudgmentororderisbeingexecutedislocated.Wherebothpartiesconcernedapplyfordetermininganappraisalinstitutionbypublicbidding,thepeople'scourtshallgrantpermission.
[Note:Article5isdeleted.]
Article6Afterthepeople'scourtreceivestheappraisalreportissuedbytheappraisalinstitution,itshall,within5days,sendittothepartiesconcernedandotherinterestedparties.Whereapartyconcernedoranyotherinterestedpartyobjectstotheappraisalreport,itshallputforwarditsobjectionsinwritingtothepeople'scourtwithin10daysafteritreceivestheappraisalreport.Whereapartyconcernedoranyotherinterestedpartyappliesforre-appraisalbecauseithasevidencetoprovethattheappraisalinstitutionoritsappraiserisineligibleortheappraisalprocessisinseriousviolationofthelaw,thepeople'scourtshallgrantpermission.
[Note:Article6isdeleted.]
Article7Theauctioninstitutionshallbeexaminedanddeterminedbythepeople'scourt,afterthepartiesconcernedhaveagreedupontheauctioninstitution.Ifthepartiesconcernedfailtoreachanagreement,theauctioninstitutionshallberandomlysortedoutfromthebeadrolloftheauctioninstitutionsasdeterminedbytheexecutingpeople'scourtorbythepeople'scourtoftheplacewherethepropertyofthepersonagainstwhomajudgmentororderisbeingexecutedislocated.Wherebothpartiesconcernedapplyfordetermininganauctioninstitutionbypublicbidding,thepeople'scourtshallgrantpermission.
[Note:Article7isdeleted.]
Article8Areservepriceshallbesetforanauction.Thereservepriceofanauctionshallbedeterminedbythepeople'scourtbyreferencetotheappraisedprice.Ifnoappraisalismade,itshallbedeterminedbyreferencetothemarketpriceaswellastheopinionsofthepartiesconcerned.Atthefirstauction,thereservepriceasdeterminedbythepeople'scourtshallnotbelowerthantheappraisedpriceorlowerthan80%ofthemarketprice.Iftheauctionfails,whenasecondauctionismade,thereservepricemaybeloweredbytakingthecircumstancesintoconsideration,buttheamountofdecreaseateachtimeshallnotexceed20%oftheformerreserveprice.
[Note:Article8isamendedtoread:“Areservepriceshallbedeterminedforanauction.Wheretheauctionedpropertyisappraised,theappraisedpriceshallbethereservepriceofthefirstauction.Ifnoappraisalisconducted,thereservepriceshallbedeterminedbythepeople'scourtbyreferencetothemarketpriceandbysolicitingtheopinionsoftherelevantparties.Wherethepropertyfailstobesoldinthefirstauctionandanewauctionisconducted,thereservepricemaybereducedaccordingtospecificcircumstances,providedthateachreductionofthereservepricemaynotexceed20%ofthepreviousreserveprice.”]
Article9Afterthereservepricehasbeenset,inlightofthecalculationbasedonthereservepriceofthecurrentauction,ifitisunlikelytohaveanysurplusafterdeductingtheprioritycreditsandthecompulsoryexecutionfeesfromtheauctionprice,theexecutionapplicantshallbenotifiedoftherelevantinformationpriortotheauction.Iftheexecutionapplicantappliesforcarryingontheauctionwithin5daysafteritreceivessuchanotice,thepeople'scourtshallgrantpermission,butitshalldetermineanewreserveprice,whichshallexceedthetotalamountoftheprioritycreditsandthecompulsoryexecutionfees.Iftheauctionasmentionedintheprecedingparagraphfails,theauctionexpensesshallbebornebytheexecutionapplicant.
Article10Theexecutingpersonnelshallconductnecessaryinvestigationsintotheownership,occupationanduseoftheto-be-auctionedproperty.Theyshallmakeinvestigationtranscriptsaboutthestatusquoofto-be-auctionedpropertyorgatherotherrelevantinformation.
Article11Anannouncementshallbeissuedpriortoanauction.Astoanauctionofmovableproperty,anannouncementshallbeissuednotlaterthan7daysbeforetheauctionisheld.Astoanauctionofimmovablepropertyorotherpropertyrights,anannouncementshallbeissuednotlaterthan15daysbeforetheauctionisheld.
Article12Therangeandmediaforanauctionannouncementshallbedeterminedbybothpartiesconcernedthroughnegotiation.Ifnoagreementisreached,adecisionshallbemadebythepeople'scourt.Iftheto-be-auctionedpropertyfallswithintherangeofaspecialty,theannouncementshallbepublishedsimultaneouslythroughthespecializednewspapers.Whereapartyconcernedappliesforpublishingtheannouncementthroughotherpressmediaorrequeststoenlargetherangeofannouncement,itshallbegrantedwithanapproval,andthepartyconcernedshallbeartheadvertisingexpensesbyitself.
Article13Astoanauctionofimmovableproperty,otherpropertyrightsorvaluablemovableproperty,thebiddersshallpayasumofsecuritytothepeople'scourtpriortotheauction.Iftheexecutionapplicantintendstoactasabidder,itisn'trequiredtopaythesecurity.Theamountofsecurityshallbedeterminedbythepeople'scourt,butitshallnotbelowerthantheappraisedpriceorlowerthan5%ofthemarketprice.Anyonewhofailstopaythesecuritythatitshouldhavepaidinadvancemaynotactasabidder.Afterthesuccessfulbiddercomesout,thesecuritypaidbyitinadvancecanoffsettheauctionprice.Thesecuritypaidbyotherbiddersinadvanceshallberefundedwithin3days.Iftheauctionfails,thesecuritypaidbythebiddersinadvanceshallberefundedwithin3days.
Article14Thepeople'scourtshall,notlaterthan5dayspriortotheauction,informthepartiesconcerned,theknownholdersofrealrightforsecurity,holdersofpreemptiverightorotherholdersofpreferentialrighttoappearattheauctionsiteonthedateofauctioninwritingorthroughanyotherproperformthatcanconfirmtheinforming.Ifaholderofpreemptiverightwhohasbeeninformedoftheabove-mentionedmatterfailstodulyappearattheauctionsite,theholdershallbedeemedashavingwaivedthepreemptiveright.
Article15Whereanylaworadministrativeregulationspeciallyprovidesforthequalificationsorconditionsofabidder,thebiddershallhavethosequalificationsorconditions.Theexecutionapplicantandthepersonagainstwhomajudgmentororderisbeingexecutedmayactasbidders.
Article16Duringthecourseofauction,ifthehighestbiddingismade,aholderofpreemptiverightmayexpressitsintentionofbuyingatthehighestprice.Ifthereisnohigherbidding,theaforesaidholderofthepreemptiverightwinstheauction.Ifthereisahigherbidding,andtheholderofpreemptiverightmakesnointentionresponse,thenthebidderwhomakesthehighestbiddingwinstheauction.Whentwoormoreholdersofpreemptiverightofthesamepriorityordersimultaneouslyexpresstheintentionofbuying,thewinnershallbedecidedbydrawinglots.
Article17Whenseveralpropertiesareauctioned,iftheproceedsfromtheauctionofsomeofthepropertiesisenoughtoclearoffthedebtsandtopaytheexpensesthatshallbepaidbythepersonagainstwhomajudgmentororderisbeingexecuted,theunfinishedauctionoftheotherpropertiesshallnotbeconductedunlessthepersonagainstwhomajudgmentororderisbeingexecutedagreestoauctionthemall.
Article18Iftheto-be-auctionedseveralpropertiesareunabletobedividedintheaspectofuse,ortheirvaluewillbedecreasediftheyareauctionedseparately,theyshallbeauctionedasawhole.