Misc Flashcards
1
Q
Purpose of the LOI
A
A letter of intent is a nonbinding contract entered into by an investor for the purpose of obtaining reduced sales charges. If the client were to redeem the entire account before fulfilling the terms of the letter, or if the 13 months elapsed without the full amount being invested, the escrowed shares would be redeemed and the proceeds used to pay the additional sales charge.
