The scope of effect of the right to rescind a loan contract is:

1. Registration of rights for the canceled act;

2. For a third party who will be transferred due to the transfer The transfer of the property acquired through the act is then transferred to a bona fide purchaser;

2. Other scope of validity of the right to cancel the loan contract.

Legal Basis

Article 538 of the "People's Republic of China and Civil Code"

The debtor shall give up its creditor's rights, give up the creditor's rights guarantee, If the property rights and interests are disposed of for free by means of free transfer of property, or the time limit for performance of the due creditor's rights is maliciously extended, thereby affecting the realization of the creditor's creditor's rights, the creditor may request the People's Court to revoke the debtor's actions.

Article 539

The debtor transfers property at an obviously unreasonable low price, transfers other people’s property at an obviously unreasonable high price, or provides guarantee for other people’s debts. If the debtor's counterparty knows or should know about the situation that affects the realization of the creditor's rights, the creditor may request the people's court to revoke the debtor's behavior.