Under what circumstances are IOUs not protected?

An IOU is a written voucher issued by the borrower to the lender. In real life, IOUs can also be used by some people with ulterior motives and eyes for money as a means of defrauding money, so that you will suffer relief losses. In addition, there are two issues related to lending money that need to be brought to the attention of friends:

1. When borrowing, do not lend to the other party if you know that the other party will use it for illegal activities. According to the laws of our country, the loan is not protected by law. In the event that the other party does not repay the money, it cannot be protected through litigation.

2. For IOUs with a repayment period, it is necessary to claim rights within two years after the expiration of the repayment period, that is, to file a lawsuit with the people's court. According to the laws of the People's Republic of China, the statute of limitations for a party to request the people's court to protect civil rights is two years, and if the borrower files a lawsuit with the people's court two years after the expiration of the loan, but there is no suspension, interruption or extension of the statute of limitations, the borrower will lose the right to win the lawsuit.

An IOU is considered an agreement, and as long as it violates the requirements for the validity of a civil legal act, it is not protected.

Three (1) The parties to the IOU do not have the capacity for civil conduct.

2) The parties' intentions are untrue, coerced, or deceptive.

3) The content of the IOU is illegal, including violating laws and administrative regulations, and also harming the public interest and the legitimate interests of others.

1. Illegal lending relationships.

Second, the time limit for prosecution has been exceeded.

Legal analysis: IOUs are not protected by law under the following circumstances: (1) taking credit funds from financial institutions and relending them to the borrower at usurious interest, and the borrower knew or should have known in advance; (2) Where funds obtained by borrowing from other enterprises or raising funds from the employees of that unit are then re-lented to the borrower for profit, and the borrower knew or should have known in advance; (3) The lender knew or should have known in advance that the borrower was borrowing money for illegal or criminal activities, but still provided the loan; (4) Violating public order and good customs; (5) Other violations of mandatory provisions on the effectiveness of laws or administrative regulations.

Legal basis: Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases Article 14 IOUs are not protected by law under the following circumstances:

1) Arbitraging credit funds from financial institutions and lending them to borrowers at usurious interest, and the borrowers knew or should have known about them in advance; (2) Where funds obtained by borrowing from other enterprises or raising funds from the employees of that unit are then re-lented to the borrower for profit, and the borrower knew or should have known in advance; (3) The lender knew or should have known in advance that the borrower was borrowing money for illegal or criminal activities, but still provided the loan; (4) Violating public order and good customs; (5) Other violations of mandatory provisions on the effectiveness of laws or administrative regulations.

Legal Analysis: IOUs are not protected by law in the following cases:

1) Arbitraging credit funds from financial institutions and lending them to borrowers at usurious interest, and the borrowers knew or should have known about them in advance;

(2) Where funds obtained by borrowing from other enterprises or raising funds from the employees of that unit are then re-lented to the borrower for profit, and the borrower knew or should have known in advance;

(3) The lender knew or should have known in advance that the borrower was borrowing money for illegal or criminal activities, but still provided the loan;

(4) Violating public order and good customs;

(5) Other violations of mandatory provisions on the effectiveness of laws or administrative regulations.

Legal basis: Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases Article 14 IOUs are not protected by law under the following circumstances:

1) Arbitraging credit funds from financial institutions and relending them to borrowers at usurious rates, and the borrowers knew or should have known about it in advance;

2) The funds obtained by borrowing from other enterprises or raising funds from the employees of the unit are then re-lented to the borrower for profit, and the borrower knew or should have known in advance;

(3) The lender knew or should have known in advance that the borrower was borrowing money for illegal or criminal activities, but still provided the loan;

(4) Violating public order and good customs;

5) Other positive violations of mandatory provisions on the effectiveness of laws and administrative regulations.

An IOU is actually a loan contract, and the contract is invalid under the following circumstances.

1) One party concludes a contract by means of fraud or coercion, harming the interests of the state;

2) Malicious collusion, harming the interests of the state, the collective, or a third party;

3) Concealing illegal purposes in a lawful form;

4) Harming the public interest;

5) Violating mandatory provisions of laws and administrative regulations.

In addition, if a person who lacks or has limited capacity for civil conduct is unable to independently carry out an act in accordance with the law, and one party uses fraud, coercion or taking advantage of the danger of others to cause the other party to act contrary to its true intentions, it is a void contract.

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