Proving an inter-company loan

Under the Russian Civil Code, a loan agreement involving legal entities must be made in writing, irrespective of the amount. But what if there is no written agreement, and the money transfer is confirmed by a bank statement? The Supreme Court responds: this type of proof will also suffice, but only in conjunction with other proof.

Luybov Doroshenko tells a Pravo.ru journalist how a lender can prove that a loan had actually taken place.

A plaintiff needs to confirm the agreement or sequence of agreements (including assignments) based on which the loan relations occurred between it and debtor, as well as prove the fact that monies were actually granted to the debtor (as a rule, banking documents).

In order to simplify and expedite the case examination in your favor, as well as for justifying the claim being filed within the statute of limitations period, it is recommended to also provide any “paper trail” confirming that the debtor acknowledged the existence and amount of the debt, in particular, any reconciliation statements, addenda to the original loan agreement, any other bilateral documents, correspondence, unilateral notices and letters of the debtor that document the debtor assuming its debt before the plaintiff or the plaintiff’s predecessors.