Sequelae of the Mine Explosion in the Credit Network: An Investigation on the Dispute of Payment of Debt by Housing in P2P

category:Finance
 Sequelae of the Mine Explosion in the Credit Network: An Investigation on the Dispute of Payment of Debt by Housing in P2P


Nearly a year after the explosion of the credit network, some investors have been seized to settle their debts, causing controversy.

After the thunderstorm in August last year, Weining, CEO of the credit network, announced that the total amount of creditors rights was about 1.516 billion yuan, with only a few repayments.

On July 12, the Public Security Bureau of Chengdu High-tech Zone informed the public about the latest progress in the case of suspected illegal fund-raising by the credit network. To freeze the funds of the companies and suspects involved in the case, and to recover the dividends of shareholders, employee commissions and the unreturned funds of borrowers; to freeze more than 12 million yuan of cash and 170,000 yuan of financial products, to seize 610 shops and houses, 1064 parking spaces and 5 vehicles; to carry out one-by-one verification of nearly 100 borrowers. Check and seal up the related assets of the borrowers who have not repaid the loans, and urge them to repay the loans in time again.

As for the phased achievements of the High-tech Public Security Branch, Kong Xming and more than 100 other investors raised objections: The Agreement on Housing Debt Settlement and the Contract for Sale and Purchase of Commercial Housing were signed voluntarily by the three parties before the case was filed. It does not violate the compulsory provisions of law. According to the agreement, we legally own 27 sets of compensated businesses in Huaqiao Yayuan. Shop, Chengdu high-tech public security should not be closed down.

He recalled that on July 21, 2018, the Portfolio Network announced that all investment targets were overdue. On October 10, the credit network was opened to register online for mortgage repayment. After online registration, more than 180 people, including Mr. Kong, were notified to participate in the first batch of mortgage repayment.

On October 19 of the same year, the credit network designated Chengdu Jiaye Real Estate Development Co., Ltd. to sign the tripartite Housing Debt Payment Agreement one by one with the above 180 investors and the credit network, agreeing that the debts of Jiaye Real Estate, the credit network and the investors should be offset each other, and Jiaye Real Estate will be offset by the Huaqiao Yayuan Project Shop in Xinjin County, Chengdu City. Pay back to the investor. Jiaye Real Estate and Investors signed the Commercial Housing Sale Contract one by one, and agreed to hand in the house before the end of March 2019, and complete the online signature filing within one year, and issue the Letter of Commitment.

In response, the staff of the Financial Bureau of Chengdu Hi-tech Zone made it clear when receiving the consultation from investors: It is not illegal for the credit network and investors to do so. If the subject matter does exist and both sides agree to transfer the debt and creditors rights, then there is no violation of the law in this area; if the borrower is unable to repay the debt, then the loan will be made. People use his collateral to pay off, transfer creditors rights, investors from a legal point of view there is no problem.

On October 31, 2018, the credit network was filed by Chengdu High-tech Zone Public Security Bureau for suspected illegal fund-raising.

On March 25, 2019, one week before the appointed date of delivery, the Public Security Bureau of Chengdu High-tech Zone abruptly closed down the shops for compensation, and requested Jiaye Real Estate not to hand over the houses to the above investors.

On August 3, a reporter from China Real Estate Daily saw that most of the undertakers and houses of the project were vacant except for some of their accommodation, and the sales office was empty.

China Real Estate News reporter on-site visits found that the headquarters of the credit network in Hilton Square, Tianfu Third Street no longer exists, while Chengdu Branch, located in the New Hope Building, is empty and in a mess.

On August 5, 2019, the Economic Investigation Brigade of Chengdu High-tech Zone Public Security Bureau responded to the interview request of China Real Estate Journal reporter, saying: At present, it is still in the investigation stage, and all information is subject to publication. On the same day, the staff of the Finance Bureau of the High-tech Zone said that their supervisors were absent and could not be interviewed.

At present, there is no latest progress in this controversial seizure.

In the follow-up processing of the explosion of the credit network, the dispute of paying off debts by housing is of typical significance. In recent years, the use of P2P platform to raise funds for real estate enterprises has long become a high-risk and disaster-stricken area, resulting in a billion-level platform group lending network explosion incidents are endless. Since 2011, a large number of non-performing creditors have emerged in China. Among them, the scale of non-performing debts on P2P platform is about 100 billion, the large-scale bankruptcy tide of private investment guarantee companies, and illegal fund-raising cases on the Internet are also showing a high trend. In addition, there are other triangular debt relations and other phenomena, which lead to many investorssavings over the years. There is no return of blood. Creditors rights to replace the real estate payment program also began to emerge at the right time.

However, for investors, the way to pay for the replacement of real estate by creditors rights is ultimately a helpless choice to stop the loss. However, taking the credit network as an example, it is worth pondering whether the reasonable and legitimate replacement of creditors rights can be recognized and respected by law enforcement agencies in practice.

The Event: 100 Investors Debt-paying Dilemma with Housing

According to Kong Xming, since 2012, investors, including him, have registered accounts and invested in loans online. As of July 21, 2018, the outstanding balance of principal and interest of investors who agreed to repay their debts by housing totaled 87 million yuan and 4 million yuan. The above-mentioned loans are signed Internet lending intermediary service contract with the credit network online one by one, and are preserved by electronic evidence provided by worry-free deposit certificate and deposited by Zhejiang Commercial Bank.

On July 21, 2018, the network suddenly announced that all creditors rights were overdue, and the situation deteriorated rapidly. Unexpected circumstances occurred, such as senior executives leaving the country, unclear multi-party audits, less than 1% of the payment, and various parties seizing capital and assets. Our victims are experiencing the darkest moments of their lives and living like a year. He said.

Since September 2018, the network has repeatedly declared in the official Wechat group of investors that some borrowers do not have cash to repay their debts by housing. It has announced the scheme of repaying debts by housing and the underlying situation. The scheme has been reported to the Financial Bureau of the High-tech Zone of the P2P Regulatory Department in advance, and the Financial Bureau has not objected to it.

On October 10, the same year, the website issued an announcement on the platform of Notification of the Applying Procedure for Debt Payment by Housing and opened online registration. Huaqiao Yayuan shop, which is used to pay off debts, is located in a remote location and is extremely difficult to cash in. Most investors are reluctant to accept the scheme. However, in order to recover losses, some investors do not give up any hope of stopping losses. They apply online at the first time and are confirmed by the credit network. He said.

Under the arrangement of the Port Loan Network, we signed the agreement of repaying debts by houses with the Port Loan Network and Jiaye Real Estate one by one on October 19, and signed the Sichuan Commercial Housing Sale Contract (Pre-sale) with Jiaye Real Estate, confirming that the outstanding principal (abandoning the recovery of interest pending) in the Port Loan Network was voluntarily paid by Jiaye Real Estate. Its development of shops to offset, while the credit network in its platform to clear all the outstanding balances, follow-up credit network to carry out multiple cash payments also to the credit network and we no longer have unliquidated debts as a reason to exclude us.

On March 25, 2019, just one week before the latest delivery date stipulated in the contract, the Public Security Bureau of Chengdu High-tech Zone suddenly verbally notified Jiaye Real Estate to suspend the delivery of the above-mentioned property to investors, and then implemented the seizure on the grounds that the above property belongs to the recoverable assets in the case of illegal fund-raising by the credit network.

But the fact is, as the largest borrower of the credit network, Jiaye Real Estate Actual Controller Generation Xsheng still had 170 million loans outstanding before the credit network was filed. According to the loan agreement between DaiXsheng and the credit network, the above loans are used for the development and construction of Huaqiao Yayuan Project in Xinjin County, Chengdu and Deyin International Project in Delingha City, Qinghai Province.

It is understood that there are 721 apartments and 136 shops in the Huaqiao Yayuan project, all of which have not handled property rights certificates. Some of the houses and shops that have been sold have online signatures for filing, but according to the Property Law, some of the houses that have been online signatures for filing can not be confronted with seizure and enforcement.

The public security in the high-tech zone has only selectively seized our mortgaged real estate (the contract value is 87 million yuan, the developer has mortgaged to the bank, the actual value is seriously insufficient, far less than 170 million yuan). They have turned a blind eye to other high-value assets of Jiaye Real Estate, especially residential buildings, and allowed relevant stakeholders to receive, mortgage or implement other assets. Measures to preserve property. Kong Xming said.

The authenticity of the above-mentioned investorsrepayment of debts by housing is confirmed by the agreement on repayment of debts by housing provided by Mr. Qiu, a local investor in Chengdu, the letter of commitment issued by Chengdu Jiaye Real Estate and the Commercial Housing Sale Contract signed by the investor and Jiaye Real Estate.

Mutual Settlement of Debts: A Rule-based Legal Basis

According to the survey, Housing Debt Settlement Agreement is a tripartite agreement signed by the credit network before filing. The contracting parties are investors, credit network and Chengdu Jiaye Real Estate Development Co., Ltd. The agreement stipulates that: the credit network is the debtor of the investor, and Jiaye Real Estate is the debtor of the credit network. The three parties realize debt repayment, and Jiaye Real Estate voluntarily repays the investor with the property it develops.

Like Kong Xming, more than 100 investors have chosen to pay off their debts with their houses. Their outstanding creditors rights are all formed after lending funds completely on the platform of the credit network. Legitimate, true and effective, there are screenshots of the website of the loan, the running water of the Zhejiang Commercial Bank and the carefree deposit certificate contract as authentic evidence. The facts all have contracts and transfer flow water, etc. The evidence is available. An unnamed investor said.

Many investors interviewed said that in September 2018, after multi-party consultations, Jiaye real estate as a credit network debtors voluntarily repay their debts to investors with real estate. Afterwards, the credit network began to prepare the housing debt repayment scheme, which was widely notified in the official group of investors on many occasions, and registered publicly on the credit website on October 10, 2018. The scheme was reported to the Financial Bureau of the High-tech Zone of the P2P Regulatory Department in advance. The Financial Bureau did not object to it.

China Real Estate News reporter at the Huaqiao Yayuan Project site (Huaqiao Town, Xinjin County) saw that most of the houses and shops are vacant except for a small part of the project, with an average price of 8,000 yuan per square metre. Prior to this project, owing to financial problems, owners frequently defended their rights due to delayed delivery and quality problems.

In addition, before the signing of the mortgage agreement and the filing of the loan network, the loan network was investigated by the public security organs on suspicion of the crime of illegally absorbing public deposits before October 31, 2018, according to the notification of the public security of the high-tech zone.

Our tripartite Housing Debt Settlement Agreement and Commercial Housing Sale Contract were signed by October 31, 2018. Before it is formally filed, although it is difficult to pay, it still belongs to a company limited by shares legally established in accordance with the Company Law. It enjoys the status of an independent legal person and civil capacity according to law and can sign relevant contract agreements according to law. Kong Xming said.

According to the tripartite agreement on repayment of debts by housing signed by us with the credit network and Jiaye Real Estate, Jiaye Real Estate voluntarily assumes the obligation of repayment for the credit network and repays the debts with the property developed and constructed by itself, which belongs to the third partys initiative to undertake debts and compensate for them, and does not violate the mandatory provisions of laws and administrative regulations. Regardless of the relationship between Jiaye Real Estate and the loan network, whether its construction funds come from the loan network or not. According to the Tripartite Agreement on Payment of Debts by Housing, we have the right to recourse for the debts of Jiaye Real Estate according to law. Jiaye Real Estate shall assume the obligation of performance to us with its legally owned assets. According to the Tripartite Agreement on Payment of Debts by Housing, on the date of signing the agreement, the obligation of Jiaye Real Estate Substitution Credit Network to repay our investment funds will take effect immediately, and the original tripartite debt relationship has been lost. Although the real estate belongs to the new house, its transfer procedures are longer, but they all belong to the realization of the rights of Jiaye Real Estate under the Commercial Housing Sales Contract, and have nothing to do with the credit network, he said.

In addition, there is no illegal situation of transferring the assets of the credit network and damaging the legitimate rights and interests of other investors he said, because according to the requirements of the credit network, this debt repayment by housing must be based on the real estate price given by Jiaye Real Estate (significantly higher than the market price, the highest unit price of the shop building area is 24,000 yuan/square metre) according to 1: 1. To compensate the principal to be received by the investor, the interest to be received must be abandoned, and the above-mentioned property has been mortgaged to the bank by Jiaye Real Estate. Housing debt can only make up for part of the principal loss of investors. There is no such situation as taking too much money, illegally transferring assets of the credit network, and damaging the interests of other investors who did not choose the housing debt scheme (at that time, many investors voluntarily abandoned the housing debt scheme).

In fact, the legal basis for these debts-paying houses that have been investigated and dealt with in dispute is clear: according to Article 64 of the Criminal Law of the Peoples Republic of China, All property illegally obtained by criminals shall be recovered or compensated. The legitimate property of the victim shall be returned in time. Article 9 ofInterpretation of Several Questions Concerning the Specific Application of Law in Handling Criminal Cases of Fraudissued on March 1, 2011 by the Supreme Peoples Court and the Supreme Peoples Procuratorate (Interpretation of Law [2011] No. 7),Sealing up and withholding after the case is committed If the ownership of the fraudulent property and its fruits in the case is clear, the victim shall be returned. The Supreme Peoples Procuratorate, the Supreme Peoples Court and the Ministry of Public Security issued on March 25, 2014The Supreme Peoples Court, the Supreme Peoples Procuratorate and the Ministry of Public Security Concerning Several Issues Concerning the Application of Law in Handling Criminal Cases of Illegal Fund-raising See Article 5 of If the principal of the participants in fund-raising has not yet been returned, the returns paid may be converted into principal and Article 5 of the Notice on the Legal Treatment of Illegal Fund-raising Crimes issued on September 29, 2015, If the principal of the participants in fund-raising has not been returned, the returns paid may be converted into credits. The principal and so on are involved.

In an interview with China Real Estate News, Wu Xindong, a lawyer of Beijing Deheng Law Firm, gave his views on the behavior of mortgage net investors paying off their debts by housing. Lenders enjoy legal creditors rights to the network based on the repurchase responsibility of the network; Jiaye Real Estate Export Network assumes the responsibility of liquidation; Jiaye Real Estate Export Network enjoys legal rights to Jiaye Real Estate. Creditors rights; Settlement of debts by housing constitutes debt offset according to law. The contents of the Agreement on Settlement of debts by housing and the purchase contract do not violate the mandatory provisions of laws and administrative regulations, and should be lawful and effective.

The arrangement of equal offset of tripartite mutual liabilities stipulated in the Agreement on Settlement of Debts by Housing signed by the lender, the loan network and Jiaye Real Estate conforms to the provisions of the Contract Law of the Peoples Republic of China. The legal effect of offset will occur on the date of the signing of the three sets of shopspurchase contracts of Kong Xming, and the three sets of shops belong to the lenders personal partnership according to law. Property owned by law.

Focus of controversy: accused of selective law enforcement

According to the Confirmation of Creditors Rights and Debts signed by Jiaye Real Estate Actual Controller Generation Xsheng and Hanzhi, as of July 30, 2018, personal debts of Generation Xsheng amounted to 170 million yuan. According to the Maximum Loan and Guarantee Contract signed by DaiXsheng and Credit Network, DaiXsheng loan is used for Huaqiao Yayuan in Xinjin County, Sichuan Province, and Deyin International Garden in Delingha City, Qinghai Province. The funds shall not be used for illegal purposes.

According to industry and Commerce information, DaiXsheng acted as legal representative in seven enterprises, with registered capital totaling 83.46 million yuan; invested in 11 enterprises with a maximum investment amount of 49 million yuan; and actually controlled 11 enterprises with a total registered capital of 197.36 million yuan. All personal assets of generation X students, including cash, real estate and equity, can be seized. Most investors who choose to pay off their debts by housing think so.

According to the data of Xinjin Housing and Construction Bureau, there are 721 apartments and 136 shops in Huaqiao Yayuan Project, some of which have been sold, but no transfer formalities have been completed. According to the Property Law and the Supreme Law precedent, online signature filing can not confront seizure and enforcement. All 857 apartments in Huaqiao Yayuan can be sealed up. According to local public security information, part of the project has been sealed up. The details are not clear.

However, facing so many personal assets of Generation X and so many properties that can be sealed up in Huaqiao Yayuan and X Yin International Garden, the Public Security Bureau of the High-tech Zone has only selectively closed 27 shops in Huaqiao Yayuan, which are repaid by houses. The above shops are worth about 87 million yuan in accordance with the Agreement on Settlement of Debts by Housing and the Contract for Sale and Purchase of Commercial Housing, but have all been mortgaged to the Chengdu Branch of West China Bank of the Great Wall for development loans. According to the market value evaluation and considering the priority of mortgage repayment, the actual value of 27 sets of shops repaid by housing is less than 40 million yuan.

Wu Xindong, the lawyer mentioned above, believes that the arrangement of equal offset of debts between the lender, the credit network and Jiaye Real Estate under the Agreement on Settlement of Debts by Housing Agreement is in accordance with the law. The legal effect of the offset will take place on October 21, 2018, the date of the signing of the three sets of purchase contracts for shops, and Kong Xmings three sets of shops for settling debts by housing. From October 21, 2018, the lender belongs to the property legally owned by the lender; the lender belongs to the victim of the illegal fund-raising crime of the credit network. As a participant in the fund-raising, he is not the third person or other person in the criminal case. Before the credit network is put on criminal record, the principal can be deducted by three sets of shops obtained by way of housing debts. It does not belong to the scope of criminal recovery stipulated by laws and regulations; the three sets of shops used to compensate Jiaye Real Estate belong to the behavior of paying off debts from Jiaye Real Estate to the Portfolio Network, and do not belong to the situation of paying off debts or transferring funds from the Portfolio Network to Jiaye Real Estate as stipulated by relevant laws, and do not belong to the norm of criminal recovery according to law. Wai.

In addition, Chengdu Ligiant Network Services Co., Ltd. is the affiliated party of the credit network. Wu X and Wei XX, the actual controllers, have economic contacts with Wenmou, the shareholders and senior managers of the credit network. Their company works with the credit network co-ordinated office. Wu and Wei are also the linkers of the acquisition of the credit network by listed companies, and among them, Wu and Wei are the linkers of the acquisition of the credit network by listed companies. Accept huge rewards. Li Giant and Wu Xs business dealings with the credit network as well as the so-called debt belong to ordinary debt. The damage level and the order of repayment should be after the victim. After the difficulty of payment appeared in the network, Li Giant deducted about 9.5 million yuan from the public account through the network (including 5 million yuan of deposit of Zhejiang Commercial Bank, 2.4 million yuan of self-owned funds of the network and 2.6 million yuan of pending funds of the network), obtained 78.8 million yuan of creditors rights and 10 million yuan of third-party compensation. Father Fei X Ping, shareholder and senior manager of the credit network, transferred 20 million yuan after the difficulty of repaying the debts of the network. It is doubtful whether the above-mentioned capital assets are recovered by the public security of the high-tech zone at present.

On July 3, 2019, the Procuratorate of Chengdu High-tech Zone said in its reply to Kong Xming and other investors who paid off their debts by housing: You accused Chengdu Public Security Bureau High-tech Branch of illegal seizure of property and selective law enforcement problems in handling the case of illegal absorption of public deposits by the credit network. After the examination of the Court, Chengdu Public Security Bureau considered that Chengdu Public Security was high. The seizure of property by the new branch office in the case of suspected illegal absorption of public deposits by the credit network is not improper, nor is there a problem of selective law enforcement.

This letter of reply completely destroyed the hope of more than 180 investors, such as Kong Xming, to recover their losses by repaying their debts with their houses.