Chapter 52

"Manager You, hello. This is the paperwork from Lawyer Han, please take a look."

Li Xiaolei, in perfect sync, opened her bag and placed the lawyer's qualification certificate, power of attorney, and letter of introduction one by one in front of him. Then she took out a notebook and a pen, and sat down with a smile.

Not here to buy a house, but to collect a debt!

Liangzhuang Construction Company is really not playing fair. If there's something to talk about, let's talk it out. Why involve a lawyer?

Going to court is too much trouble. It's not like a few months ago; there's no need for a lawsuit. Manager You hurriedly took out a Da Zhonghua cigarette, offered it while smiling, and said, "Lawyer Han, I'm sorry, I'm sorry. The project payment has been delayed for nearly three years, and it's our fault. We didn't intend to delay it. The main issue was the policy change; the central government didn't allow us to get loans from banks. No bank would dare to lend to us, or the branch manager would be fired. The policy changed so quickly, and even though we had commercial properties and fixed assets, we couldn't get a loan."

Three years ago, the banks did tighten their lending policies, and Manager Wang from the construction station said the same thing.

Han Bo took the cigarette, politely declined the offer to light it, and asked with a smile, "What about now?"

"Now we don't need to borrow from the bank. Even if they offered, I wouldn't borrow unless it was interest-free." Manager You waved his hand, exuding a sense of wealth and confidence.

When luck comes, it can't be stopped. From the tone, it seems there's no need for a lawsuit or trouble.

Han Bo was delighted but tried to maintain a serious demeanor. "Manager You, I'm sorry, but I don't know if the bank will charge you interest. I definitely need to collect interest for my client. We'll follow the contract. If you've forgotten, I can show you a copy."

It's just over a million, not a big deal.

Three years ago, they were truly in dire straits. They had dozens of creditors, with over 5 million in external debts. Unable to get loans, they had no choice but to gamble with the remaining 600,000 in their account by investing it in the stock market.

Fortunately, the clouds parted and the moon shone through. This year, their luck changed, and it was a bull market!

The stock prices they bought increased by over ten times, turning 600,000 into over 8 million. Adding the funds from employee investments, they now had over 10 million in their account.

Over the past few years, they gradually paid off the smaller debts from selling houses, leaving only Liangzhuang Construction Company as the major creditor.

Manager You was tired of owing money and didn't want to owe anyone else, but he also didn't want to miss the opportunity to make more money. He held Han Bo's hand and said with a smile, "Lawyer Han, the interest is no problem. Give me two more months, and I'll calculate it based on the bank's three-year fixed deposit rate. I promise to pay the principal and interest in full by the Spring Festival."

It seems he really has the money, and his luck is too good to be true.

Han Bo was overjoyed but tried to control his excitement. "Manager You, this project payment can't be delayed any longer. You know the nature of my client's business; it's a township enterprise. The township government is waiting for this money to pay the salaries of officials and teachers, which have been delayed for over 20 months. If you don't help resolve this, I'll have to file a lawsuit. Moreover, the workers who haven't been paid and the officials and teachers who are waiting for their salaries might come to you to demand payment."

A million in the stock market can earn tens of thousands a day. This is a rare opportunity, and Manager You didn't want to miss it. He said in a conciliatory tone, "Lawyer Han, how about this? I'll have the finance department transfer 300,000 to 400,000 to help with the immediate needs, and the rest will be paid in full by the Spring Festival, including interest."

"No, that won't work. If we don't get the money, the teachers and workers will cause trouble."

It seems Liangzhuang Construction Company can't hold on any longer. They've been delayed for over three years; it's time to pay up. They have the money, so there's no need to make things worse.

Manager You weighed his options and said firmly, "Since the township really needs this money, let's settle it today. Lawyer Han, Miss Li, I'll go to the securities company with the finance department. You can rest here for a while, and we'll have lunch together. However, the interest will be calculated based on the demand deposit rate. I hope you understand."

The township didn't even expect to get the full amount, let alone the interest.

This task was completed too smoothly, almost unreal.

To withdraw money, one should go to the bank, not the securities company. Is he trying to fool me? Maybe he doesn't have the money and is using this absurd excuse to escape.

If he can't be found, how can we collect the money? Han Bo didn't want to be careless and stood up. "Manager You, I'll accompany you. The accountant from the construction company is also here. With him, the transfer will be more convenient."

"Lawyer Han, do you not trust me?"

"Of course not, but my client really needs this money."

Thinking that this guy might really have the money, Han Bo wanted to get as much as possible for the township. "Regarding the interest, the demand deposit rate is only 2.97%, which is too low. I can't explain it to my client. Manager You, you have the means, so there's no need to go to court over this small amount."

At the time, there was no bidding; it was a negotiated bid. Liangzhuang Construction Company offered the lowest price, with low profit margins. They were afraid of not getting paid, and the contract did have a penalty clause. The project quality was good, and it was completed ahead of schedule. Delaying for over three years and only paying demand deposit interest is unreasonable.

The current bank loan rate is extremely high, and the three-year fixed deposit rate is 10.8%!

Every little bit counts. Manager You smiled. "How about a flexible savings account, calculated at 60% of the one-year fixed deposit rate?"

"Secretary Li, what does the contract say?"

They had discussed this scenario on the way. Li Xiaolei remembered the key data clearly and said, "Within 15 working days after the project is completed and accepted, the party A must pay all remaining payments except the quality guarantee deposit. If party A breaches the contract, they must pay a penalty of 0.02% per day on the remaining payment. One year after the project is completed and accepted, party A must pay the final payment, which is the quality guarantee deposit..."

0.02% per day, calculated daily, the accumulated penalty would be significant.

The contract is signed, but how many actually follow it, especially the penalty clause.

If there's no money, there's nothing to fear.

Now that he has the money, if he files a lawsuit and can find the right connections to influence the court, he can apply for asset preservation, freezing the company's funds, especially those in the stock market.

Manager You was anxious and held Han Bo's hand tightly. "Lawyer Han, the contract is one thing, but how the settlement is done is another. The construction industry has its own practices. If we nitpick, how can we do business or complete projects? This neighborhood didn't do well mainly because of its location. We decided to start over where we fell. We just got a piece of land from the district, not for residential buildings but for office buildings, high-rise ones. The design institute is designing it now.

You represent the client and can make decisions. I am the legal representative of party A and have the final say in the company's affairs. If Lawyer Han shows sincerity regarding the penalty, we can still award the high-rise project to Liangzhuang Construction Company. They can build the entire neighborhood, ensuring quality and schedule. How about continuing our cooperation?"

It would be good to help the township get another project, but your credibility is questionable.

Moreover, the design is still in progress. How can we award the project?

We can't fall for his trick, but we can't push him too hard. After all, the contract is one thing, but implementation is another. Jiangcheng is his home turf, and the Jiangcheng court will likely favor local enterprises. The judge won't support a 0.02% daily penalty.

"Three years ago, a million was worth much more than it is now. My client has suffered significant losses, and as a lawyer, I must protect their interests. Manager You, the three-year fixed deposit rate is my and my client's bottom line. Otherwise, we'll see you in court."

Making money from stocks is much better than developing more residential buildings. Only a fool would continue.

The lawyer didn't fall for it, and Manager You had no choice. After some calculations, he gritted his teeth. "Fine, let's go with the three-year fixed deposit rate. 500,000 is 500,000, let's call it a friendship!"

...

PS: 1996 was a bull market, and everyone was investing in stocks.

From April 1, 1996, to December 12, 1996, the Shanghai Composite Index increased by 124%, and the Shenzhen Component Index increased by 346%. Over 100 stocks increased by more than five times, while there were only 513 stocks in the A-share market that year.

Additionally, during those years, prices soared, and the RMB depreciated. The People's Bank of China provided a certain level of value preservation subsidies for three-year, five-year, and eight-year savings deposits based on the national economic situation and price increases.

The value preservation savings had high interest rates. For example, the one-year fixed deposit rate was 9.18%, the three-year rate was 10.80%, and the five-year rate was 12.06%. I hope this explanation helps to avoid any exaggeration.