Invalid circumstances: 1. Extracting credit funds from financial institutions and then on-lending them to the borrower at high interest rates, and the borrower knew or should have known about it in advance; 2. Using funds obtained from borrowing from other enterprises or raising funds from employees of the unit and then on-lending them to the borrowers

3. The lender knows in advance or should know that the borrower's loan is used for illegal and criminal activities but still provides the loan; 4. Violates social order and good customs; 5. Other violations of laws and administrative regulations

Effectiveness is mandatory.

Private lending is a private financial activity with a long history and widespread around the world. It mainly refers to between natural persons, between natural persons and legal persons or other organizations, and between legal persons or other organizations.

The act of conducting financial financing based on currency or other securities.

Financial institutions and their branches established with the approval of the financial regulatory authorities to engage in loan business, grant loans and other related financial services, do not fall within the scope of private lending.

Private lending and borrowing can occur between natural persons, between natural persons and legal persons or other organizations, or between legal persons, other organizations, and between them.

If a legal person or other organization raises funds from employees in the form of loans within the unit for use in the unit's production and operation, as long as there is no existence of Article 52 of the "Contract Law of the People's Republic of China" or the "Supreme People's Court's Regulations on

In the circumstances specified in Article 14 of the Provisions on Several Issues Applicable to Laws in the Trial of Private Lending Cases, the private lending contract will be valid.

Extended information: According to the "Regulations of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases": Article 2 When a lender files a lawsuit in the People's Court, it shall provide IOUs, receipts, IOUs and other credit certificates and other documents that can prove the existence of a lending legal relationship.

evidence of.

If the creditor's rights certificates such as IOUs, receipts, and IOUs held by the parties do not indicate the creditor, and the party holding the creditor's rights certificates files a private loan lawsuit, the People's Court shall accept it.

The defendant raised a fact-based defense against the plaintiff's creditor qualifications. After trial, the People's Court held that the plaintiff did not have creditor qualifications and ruled to dismiss the lawsuit.

Article 3 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 has been reached afterwards, and it still cannot be determined in accordance with the relevant provisions of the contract or trading practices, the place of performance of the contract shall be the location of the party receiving the currency.

Article 4 If the guarantor provides a joint liability guarantee for the borrower, and the lender only sues the borrower, the People's Court may not add the guarantor as ***'s co-defendant; if the lender only sues the guarantor, the People's Court may add the borrower as ***'s co-defendant.

defendant.

If 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 *** co-defendant; if the lender only sues the borrower, the People's Court may not add the guarantor as *** co-defendant.

Article 5 After the People's Court files a case, if it discovers that the private lending activity itself is suspected of illegal fund-raising crimes, it shall rule to dismiss the prosecution and transfer clues and materials suspected of illegal fund-raising crimes to the public security or procuratorial organs.

If the public security or procuratorial organ refuses to file a case, or the case is withdrawn after investigation, or the procuratorial organ decides not to prosecute, or the people's court makes an effective judgment that it does not constitute an illegal fund-raising crime, and the parties file a lawsuit with the people's court based on the same facts, the people's court

should be accepted.

Article 6 After the People's Court files a case, if it discovers clues or materials related to a private lending dispute case that are related but not of the same fact and are suspected of illegal fund-raising and other crimes, the People's Court shall continue to hear the private lending dispute case and treat the case as suspected of illegal fund-raising and other crimes.

Transfer clues and materials to the public security or procuratorial organs.