50,000 Yuan Rural Cooperative Loan: Four Guarantors Share Joint Liability After Borrower Defaults

A rural credit cooperative obtained a judgment requiring a borrower and four guarantors to jointly repay a 50,000 yuan agricultural loan plus interest, after all defendants failed to appear in court despite proper legal notice.

In May 2009, the borrower entered into a joint-guarantee agricultural loan agreement with the credit cooperative’s local branch. The loan was for 50,000 yuan at a monthly interest rate of 8.85 per thousand, with a one-year term expiring in May 2010. Four individuals signed on as joint guarantors, committing to a two-year guarantee period extending beyond the loan’s maturity date.

The cooperative disbursed the loan on schedule. However, when the loan matured, neither the borrower nor any guarantor made any repayment of principal or interest. The cooperative filed suit in December 2011, seeking the full 50,000 yuan principal plus accrued interest calculated at the contractual rate from the disbursement date.

All five defendants were properly served with court summons but none appeared or submitted any defense. The court treated their absence as a waiver of their right to challenge the evidence. The cooperative presented the original loan agreement and disbursement voucher, which the court found sufficient to establish the facts.

The court confirmed the joint-guarantee loan agreement was a genuine expression of the parties’ intent and legally valid. Under the guarantee provisions, all four guarantors bore joint liability, meaning the cooperative could demand full payment from any one of them. The court ordered the borrower to repay 50,000 yuan plus interest within ten days, with all four guarantors jointly liable for the full amount. After paying, the guarantors retained the right to seek reimbursement from the borrower. The 1,050 yuan court fee was shared among all defendants.