After 2021, formal IOUs need to refer to the Civil Code and the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases. In other words, some of the terms of the previously proposed formal IOUs may conflict with laws and judicial interpretations and need to be adjusted accordingly.
What are the terms of a formal IOU?
The basic version needs to accurately reflect the fact of borrowing, and the core elements are indispensable
IOUs. Today, due to [legitimate use], we borrowed RMB [Arabic numerals] yuan ([capital number] yuan) from [lender's household registration name], and promised to repay the principal and interest (annualized interest rate [x]%) on [XX] day of [XX] year [XX] month [XX].
Borrower: [household registration name] [ID number] [signature (handprint)].
A certain day of the year [a certain month].
The advanced version requires a number of supplementary clauses, which have two functions: to increase the cost of default for borrowers and reduce the cost for lenders to protect their rights. Articles 3, 15 and 28 of the judicial interpretation of the Supreme People's Court are very important and clearly stipulate the place of contract performance, the payment of funds, and the dispute over overdue interest rates. IOUs need to be accompanied by these terms:
IOUs. Today, due to [legitimate use], [Borrower's Household Registration Name] borrowed RMB [Arabic numerals] yuan ([capitalized number] yuan) from [Lender's Household Registration Name], and promised to repay the principal and interest (annualized interest rate [x]%) on [XX] month [XX] day of [XX] year
The lender transfers the loaned funds to the bank account designated by the borrower ([opening bank], [borrower's name], [account number]), and the IOU takes effect; When the loan expires, the borrower needs to transfer the principal and interest to the bank account designated by the lender ([opening bank], [lender's name], [account number]).
If the borrower fails to repay the loan in full on the maturity date, it will constitute a default and shall bear the overdue interest from the day after the maturity date - the overdue interest shall be charged at the interest rate determined by LPR*4 corresponding to the loan date based on the outstanding principal amount until all the principal and interest are repaid.
If a dispute arises between the lender and the borrower due to the performance of the contract, both parties have the right to file a lawsuit with the people's court with jurisdiction over the place where the borrower is domiciled or where the lender is domiciled.
Borrower: [household registration name] [ID number] [signature (handprint)].
Lender: [household name] [ID number] [signature (handprint)].
A certain day of the year [a certain month].
Handwritten IOUs are time-consuming and laborious, and it is difficult to find mistakes and omissions, so it is better to change to electronic IOUs and apply professional platform templates.
Enter the name, amount, term, interest rate and other core elements in the "Loan" APP, and the standard electronic IOU can be automatically generated. The IOU template is compiled by senior lawyers in accordance with laws and judicial interpretations, and the protection of the rights and interests of lenders is more in place.
According to the Civil Code and the Electronic Signature Law, electronic IOUs have the same legal effect as paper IOUs. The electronic IOUs of Loanbao have helped tens of thousands of people win lawsuits, and the cases are all over the provinces and municipalities.