Legal basis: Provisions of the Supreme People's Court on Auction and Sale of Property in Civil Execution by People's Courts.
Article 5 The reserve price shall be determined in an auction.
If the auction property is evaluated, the evaluation price is the reserve price of the first auction; If it is not evaluated, the reserve price shall be determined by the people's court with reference to the market price, and the opinions of the parties concerned shall be solicited.
If there is an auction target, the reserve price may be reduced as appropriate when the auction is held again, but the amount reduced each time shall not exceed 20% of the previous reserve price.
Article 16 If there is no bidder in the auction or the highest bid price of the bidder is lower than the reserve price, if the application executor or other enforcement creditors present at the auction apply for or agree to accept the auction property at the reserve price determined at the auction, they shall hand over the property to them to pay off their debts.
If more than two executing creditors apply for auction of property to pay off debts, the creditor with the first legal repayment order will be given priority; If the repayment order is the same, the beneficiary shall be determined by drawing lots. If the amount of creditor's rights payable by the debtor is lower than the price of the collateral, the people's court shall order it to make up the difference within a time limit.