Reply on the qualification of litigant subject of loan agreement dispute

(Fa Fu [1996] No.6)

Sichuan Higher People's Court:

Your request for instructions on how to determine the litigant subject in the loan contract of entrusted loan agreement (Chuan Gaofa [1995] 193) has been received. After study, the reply is as follows:

In the process of performing the entrusted loan agreement, if there is a dispute due to the borrower's failure to repay the loan on time, the lender (trustee) may bring a lawsuit to the people's court on the grounds of the loan contract dispute; If the lender insists on not bringing a lawsuit, the client may entrust the trustee of the loan agreement as the defendant and the borrower as the third party to bring a lawsuit to the people's court.

This reply.

The Supreme People's Court, People's Republic of China (PRC)

May 16, 1996