Is the company's capital lending protected by law?

Inter-enterprise fund lending shall be protected by law if there is no invalid situation stipulated by law. Private lending contracts may be concluded between legal persons, unincorporated organizations and between them for the needs of production and operation. Private lending contracts are protected by law as long as they are valid.

legal ground

Article 1 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases.

The term "private lending" as mentioned in these Provisions refers to the financing behavior between natural persons, legal persons and unincorporated organizations.

Article 10

The people's court shall support the private loan contracts concluded between legal persons, unincorporated organizations and legal persons for the needs of production and operation, except in the circumstances stipulated in Articles 146, 153 and 154 of the General Principles of the Civil Law and Article 13 of these Provisions, if the parties claim that the private loan contracts are valid.

Article 11

A legal person or an unincorporated organization raises funds from employees in the form of loans within the unit for the production and operation of the unit, and there are no circumstances stipulated in Articles 144, 146, 153 and 154 of the Civil Code and Article 13 of these Provisions. If the parties claim that the private lending contract is valid, the people's court shall support it.