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Do short message IOUs have legal effect?
Folk IOUs have legal effect. Legal basis: According to Article 210 of the Contract Law of People's Republic of China (PRC), the loan contract between natural persons becomes effective when the lender provides the loan. Article 211 If the loan contract between natural persons does not stipulate or clearly stipulates the payment of interest, it shall be deemed as non-payment. If the loan contract between natural persons stipulates to pay interest, the loan interest rate shall not violate the relevant provisions of the state on limiting the loan interest rate.
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