The Judgment Of Validity Of The Loan Contract Between Corporations

With the implementation of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases(Interpretation No.18 ?2015?),the inter-enterprise lending activities have been emancipated greatly.However,there is still a great deal of disagreement as to how to determine the validity of the loan contract between corporations in judicial practice.And this chaos of the criterion for judgment of the validity of loan contract between corporations is caused by the overbreadth judicial interpretation and the remnants of traditional ineffective perspective.This paper sorts out and analyze the sample cases which made by hundreds of closed cases after the judicial interpretation above in several angles.Based on that,this paper start with the analysis of the contents of the judicial interpretation,the exploration of the purpose of the judicial interpretation and the reflection of the deviation of judicial practice.And this paper will discuss the criteria for judgment of validity of the loan contract between corporations from the aspects of civil law,company law,administrative law,criminal law and procedural law.This paper is divided into the following six parts besides introduction.The first part is a brief introduction of judicial practice before the implementation of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases.This part divides the perspectives of judicial practice of the validity of loan contract between corporations into four stages by sorts out the related rules in the past.This part reveals the background and necessity of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases.The second part is an analysis of the Article 11 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases.The analysis used two methods which are semanticinterpretation and teleological interpretation to interpret this article.Through this part,we know that the article actually includes four kinds of restrictions which are the subject restriction,the behavior restriction,the objective restriction and the miscellaneous provisions.The third part summarizes the common types of judgments in judicial practice through the analysis of all 807 sample cases,and finds out the problems of the judgment of validity of loan contract between corporations in judicial practice.The fourth part draws a conclusion that the Required for Production or Business Operation is a kind of objective restriction for the debit,and this restriction should be understood more broadly.This part also divides all possible scenarios into six kinds and draws a conclusion from the view of civil procedure that the loan contract between corporations has the legal binding force only if the debit can prove that the contract didn't signed as required for production or business operation.The fifth part is an analysis of the problems in judicial practice.This part refutes two kinds of additional standards— Internal Funds and Commercial Lending— in the judgment of validity of loan contract between corporations,and points out that these two standards should not be used as the criteria for judgment of validity of the loan contract between corporations.The last part is the conclusion of this paper.According to all parts above,we should follow the Interpretation No.18 ?2015? to correct mistakes and to unified judge scales although it still has many problems to be solved.Moreover,the essence of the validity of loan contract between corporations is the legalization of private finance,which needs more related rules such as Non-deposit Lending Organization Ordinance.