Malicious breach of overdue loans

Legal analysis: Failure to repay the loan on time will have the following consequences: if the loan is not repaid once, the bank will call and send a short message to remind it to repay the loan on time, and there will be penalty interest. If the loan is not repaid for three consecutive times, the bank account manager will collect it and the borrower will be penalized. If the number of overdue repayments reaches six or more times, and the negotiation between the bank and the borrower fails, and the court decision is not fulfilled during the performance period, the bank will apply to the court for compulsory execution. When the court accepts enforcement, it will inquire about the real estate, vehicles, securities and deposits under the name of the lender according to law.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 577 Where a party fails to perform its contractual obligations or fails to perform its contractual obligations in conformity with the contract, it shall be liable for breach of contract such as continuing to perform, taking remedial measures or compensating for losses.

Article 578 Where a party expressly expresses or shows by his own behavior that he will not perform his contractual obligations, the other party may require him to bear the liability for breach of contract before the time limit for performance expires.

Article 579 If one party fails to pay the price, remuneration, rent or interest, or fails to perform other monetary obligations, the other party may demand payment.

Article 584 Where a party fails to perform its contractual obligations or fails to perform its contractual obligations in conformity with the contract, thus causing losses to the other party, the amount of damages shall be equivalent to the losses caused by the breach of the contract, including the benefits that can be obtained after the performance of the contract; However, it shall not exceed the losses that the breaching party foresaw or should have foreseen when concluding the contract.