Legal basis: Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases Article 12 A legal person or other organization raises funds from employees in the form of loans within its own unit for the production and operation of its own unit. There is no situation as stipulated in Article 52 of the Contract Law or Article 14 of these Provisions. If the parties claim that the private lending contract is valid, the people's court shall support it.