Bank Loan Dispute: Court Orders Repayment of 589,493 Yuan Principal and Interest

A rural credit cooperative in southern China has obtained a court judgment for repayment of 220,000 yuan in principal and 369,493.20 yuan in accrued interest on two loans dating back to 1997.

In February 1993, Mr. Wu applied for two loans from a rural credit cooperative, citing factory operations and vehicle purchase. The first loan of 100,000 yuan ran from February 28, 1997 to December 25, 1997 at 11.76 per mille monthly interest. The second loan of 120,000 yuan ran from March 23, 1997 to March 23, 1998 at the same rate.

Both loans were secured by mortgage contracts. The credit cooperative disbursed the funds and obtained signed loan instruments. However, Mr. Wu failed to repay principal or interest on schedule.

By July 21, 2011, the outstanding principal was 220,000 yuan and accrued interest totaled 369,493.20 yuan. The credit cooperative underwent a corporate reorganization in 2005, with all predecessor entities’ rights and obligations transferred to the plaintiff.

The court found the mortgage loan contracts valid and enforceable. Mr. Wu’s failure to repay constituted a breach. The court ordered repayment of 220,000 yuan principal plus 369,493.20 yuan interest within ten days, with post-judgment interest to accrue at the central bank’s overdue loan rate for rural credit cooperatives.

The case acceptance fee of 9,694 yuan was assessed against the defendant.

Disclaimer: This article is for informational purposes only and does not constitute legal advice.