Lawyer Li Xiaohua represented the loan contract dispute, and the court ruled to repay the principal and attorney fees

2. Focus of controversy

1) Is B Real Estate Company legally responsible for repaying principal and interest?

2) How do other guarantors bear legal responsibility?

3. Relevant laws and regulations

Article 667 of the Civil Code of the People's Republic of China: A loan contract is a contract in which the borrower borrows money from the lender, returns the loan at maturity, and pays interest.

4. Proxy strategy

Lawyer Ma Dehui proposed a proxy opinion:

1) The loan relationship between A Small Loan Company and B Real Estate Company is legal and valid. B Real Estate Company shall repay principal and interest in accordance with the agreement. Defendants C and D assume the guarantee responsibility to A Small Credit Company. A small credit company has the right to demand that B real estate company repay the principal, pay interest, and overdue penalty in accordance with the contract.

2) Each defendant shall bear the legal fees, insurance premiums, insurance benefits and other related expenses paid by A Small Credit Company to realize the debt.

5. Court judgment

1) B Real Estate Company repays A Small Loan Company's loan principal of 2.5 million yuan, pays interest of 327500 yuan, and incurs a penalty for overdue repayment;

2) B Real Estate Company should compensate the small loan company for a loss of 30000 yuan in lawyer fees;

3) If B Real Estate Company fails to fulfill its payment obligations, it shall auction or sell the mortgaged property. The discounted or insufficient portion of the mortgaged property after sale shall be paid by B Real Estate Company;

4) C and D shall assume joint and several guarantee liability for the payment obligation of B Real Estate Company as determined by the above judgment.

6. Compliance insights

Li Xiaohua Law Firm collaborates with high-tech companies to create intelligent compliance products for legal services, deeply integrating blockchain certification and AI reimbursement review technology to monitor and analyze internal transactions in real-time, achieving full process compliance management of "pre warning, in-process supervision, and post rectification". Its technical architecture relies on the big model DeepSeek, which accurately identifies potential bribery behavior patterns through RAG (Retrieval Enhanced Generation), precise legal and intelligent high-tech compliance products, and prevents legal risks in international and domestic enterprise operations.

Li Xiaohua Law Firm is a recommended law firm by the US Consulate, with senior lawyers, law professors, PhDs, bilingual master's degree holders studying abroad, and foreign-related legal talents.

Professional fields:

Criminal defense, company law, contract disputes, and other litigation and non litigation services.

About the Author

Wanglin is a Executive Director at Shanghai Lixiaohua Lawfirm, License No.

13101201310393885

Email: lxh@lxh-lawfirm.com

Tel：+86 21 63858668

Mobile：+86-15201864468