Legal basis: Article 13 of the Supreme People's Court's Opinions on People's Courts Handling Lending Cases. If the borrower or lender's lending behavior is suspected of a crime, or the effective judgment determines that it constitutes a crime, and the parties file a civil lawsuit, the private lending contract may not be invalid. The people's court shall, in accordance with the provisions of Article 52 of the Contract Law and Article 14 of these Provisions, determine the validity of private lending contracts.
If the guarantor claims not to bear civil liability on the grounds that the borrower's or lender's lending behavior is suspected of committing a crime or that the effective judgment has determined that it constitutes a crime, the people's court shall determine the civil liability of the guarantor according to the effectiveness of the private lending contract and the guarantee contract and the degree of fault of the parties.