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Laws and Regulations

On the legality of private lending relationship between lenders and borrowers

Article 196th of the contract law:”A loan contract is a contract whereby the borrower makes a loan to the lender and returns the loan at maturity and pays interest”.contract law allowing the natural person and other ordinary civil subjects to borrow relations,and allows the debtor to pay back the principal and the interest payable in accordance with the law.

On the legitimacy of the 9CAITONG platform to provide intermediary services matchmaking

Provisions of the twenty-third chapter of the contract law on intermediary contracts,in particular, the 424th provision:”Intermediary contract is a contract whereby the broker reports to the client the opportunity to conclude the contract, or provides the intermediary service for concluding the contract, and the principal pays the remuneration.”9CAITONG platform as intermediary service organization legally established,matchmaking for private lending,there is a clear legal basis for the intermediary service of the debtor and the debtor to form a loan relationship and collect relevant remuneration.

On the legality of electronic contract

According to the provisions of the contract law and the electronic signature law,the parties may conclude contracts in the form of contracts,letters and data messagesit includes telegram,telex,fax,electronic data exchange and e-mail,it is signed by electronic signatures, such as electronic forms, electronic signatures which are used to identify the signer and indicates that the signer has recognized the contents of this contract,the parties can not deny the legal effect only because the contract adopts electronic signature and the form of data message.

 On the legitimacy of the lender through 9CAITONG platform lending income

Article 26th of the Provisions of the Supreme People's Court of 18 [2015] on the application of law to the trial of private lending cases:”The interest rates agreed by both lenders and borrowers did not exceed the annual interest rate of 24%,the lender requests the borrower to pay interest at the prescribed interest rate,the people's court should support it.”9CAITONG loan financing yield is no more than 24%,for legitimate interest income,it should  be protected by law.