In the Supreme Court 1999 "Reply on How to Confirm the Validity of Lending between Citizens and Enterprises", the loans of enterprises and individuals are considered valid as long as the meaning is true.
Lending between citizens and non-financial enterprises (hereinafter referred to as enterprises) belongs to private lending. As long as the meaning of both parties is true, it can be considered as valid. However, in any of the following circumstances, it shall be deemed invalid:
(a) enterprises illegally raise funds from employees in the name of borrowing money;
(two) enterprises illegally raise funds from the society in the name of lending;
(3) Enterprises issue loans to the public in the name of loans;
(four) other acts in violation of laws and administrative regulations.
Article 13 of the Supreme People's Court's Provisions on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases stipulates that the borrower's or lender's lending behavior is suspected of committing a crime, or the effective judgment determines that it constitutes a crime, and the parties concerned bring a civil lawsuit.
Private lending contracts are certainly not invalid. The people's court shall, in accordance with the provisions of Article 52 of the Contract Law and Article 14 of these Provisions, determine the validity of private lending contracts.
If the guarantor claims not to bear civil liability on the grounds that the borrower's or lender's lending behavior is suspected of committing a crime or that the effective judgment has determined that it constitutes a crime, the people's court shall determine the civil liability of the guarantor according to the effectiveness of the private lending contract and the guarantee contract and the degree of fault of the parties.
Extended data:
Article 3 of the Supreme People's Court's Provisions on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases stipulates that if the borrower and the lender have not agreed on the place of performance of the contract or the agreement is unclear, and no supplementary agreement is reached afterwards, and it is still uncertain according to the relevant provisions of the contract or trading habits, the place of performance of the contract is the place where the money recipient is located.
Article 4 Where the guarantor provides joint liability guarantee for the borrower and the lender only sues the borrower, the people's court may not add the guarantor as a co-defendant; If the lender only sues the guarantor, the people's court may add the borrower as a co-defendant.
Where the guarantor provides a general guarantee for the borrower and the lender only sues the guarantor, the people's court shall add the borrower as a co-defendant; If the lender only sues the borrower, the people's court may not add a guarantor as a co-defendant.
Baidu Encyclopedia-Provisions on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases