Trust Loan Dispute Between a Trust Limited Liability Company and a Real Estate Development Company in Beijing

The subject matter of the lawsuit was more than CNY 1 billion, and Hylands’ legal team acted as the trust company’s agent in the case. The biggest difficulty of the case was the identification and calculation of interest rates and interest penalties. As the case involved a trust loan granted by the fund through a financial institution, the loan contract agreed on a relatively high-interest rate and interest penalty rate. At the beginning of the trial, the court had great concerns about the calculation of the above-mentioned interest rate and penalty interest rate. However, Hylands’ legal team explained to the court in detail the special provisions on interest rates for loans made by financial institutions after referring to a large number of theoretical documents, case studies, and consultation with financial authorities. In the end, the interest rate and penalty interest rate put forward by the Hylands team were approved by the court and the demands of the client were protected to the greatest extent.