Which of the following statements regarding a Letter of Intent (LOI) and breakpoints is true?

The statement that a Letter of Intent (LOI) is valid for 13 months is correct, as it aligns with industry standards regarding investment agreements. An LOI is a commitment made by an investor to invest a specified amount in a mutual fund over a designated period, often to reach a certain breakpoint that provides a reduced sales charge. The 13-month duration allows investors a reasonable timeframe to make the necessary investments to meet their commitments.

Understanding the context of an LOI is crucial, as it benefits both the fund and the investor. For the investor, it sets a pathway to potentially lower sales charges, while for the mutual fund, it helps secure investments that can be planned and managed effectively.

The other statements provide varying information, such as the maximum backdating of an LOI or the legal obligations of the investor, which do not align with the accepted norms. For instance, while an LOI might allow for certain flexible arrangements regarding commitments, the investor is not typically legally bound in an enforceable sense but instead makes a good faith agreement that encourages future investments. Additionally, the procedures regarding escrow for shares are associated with different regulatory contexts and do not necessarily indicate a direct relationship with the LOI itself.