On Private Lending Disputes Comment

With the further development of social economy, the folk financing has becomean important form of capital financing, legal disputes related a ppeared in largenumbers. In-depth analysis was carried out on the folk lending disputes, for theeconomic construction in our country, the judicial practice has the extremely positivesignificance. The main facts of sample case were that the defendant Chen Rongchuanborrowed the plaintiff Chen Jianna and Li Bao xian, and the latter fails to return. Bothin terms of the specific performance of debt, and loan agreement effectiveness oncontroversy which resulted in lawsuits. Involving two controversial problems: first,loan interest rates on loan agreement; Second, the problem of rural houses were usedfor mortgage.Regulations of private lending interest rate, under current law, is a "grey area".Related to the folk lending rate of the cognizance of usury, t he cognizance of thelegitimacy of the dispute and the overdue interest and compound interest, the folklending activities are very common but controversial issues.Recognize these problemscorrectly and a careful study on these questions to formulate corre sponding measuresand reasonable specification, and let this measures rise as the legal form at theappropriate time to guide the lending practices of the masses and make folk loangradually operate towards the normal development of the road. Only in this way theadvantages of folk loan can be used effectively, also that can resolve the folk loandispute more successfully. Therefore, private lending laws should be made, in order tobring the private lending activity into orbit of legal system, in which priv ate lendinginterest rates and reference standard should be set reasonably and effectively.Whether rural housing can be used for mortgage or not,which is one of the corecontentions of sample cases. The essence of the problem is legal regulation of the landcirculation problems.Observing the current situation of legislation in China,legislations related to the housing land were rough and out-of-date, making thetransfer of housing land lack of realistic operational laws. In contemporary society,due to the huge differences of price between urban and rural land, the land circulationemerged endlessly in confidence, formed a huge underground trade market. Consequently, theoretical research and pilot exploration about circulation mechanismof homestead has strong practical significance.