LOI meaning in Banking ?

Answer:

What is Letter of Intent mean?

A letter of intent (LOI or LoI, or Letter of Intent) is a document outlining the understanding between two or more parties which they intend to formalize in a legally binding agreement. The concept is similar to a heads of agreement, term sheet or memorandum of understanding. Such outlined agreements may be merger and acquisition transaction agreements, joint venture agreements, real property lease agreements and several other categories of agreements that may govern material transactions.

The capitalized form Letter of Intent may be used in legal writing, but only when referring to a specific document under discussion.

LOIs resemble short, written contracts, often in tabular form. They are not binding on the parties in their entirety. Many LOIs, however, contain provisions that are binding, such as those governing non-disclosure, governing law, exclusivity or covenants to negotiate in good faith. An LOI may sometimes be interpreted by a court of law as binding the parties to it if it too-closely resembles a formal contract and does not contain clear disclaimers.

A letter of intent may be presented by one party to another party and subsequently negotiated before execution (or signature). If carefully negotiated, an LOI may serve to protect both parties to a transaction. For example, a seller of a business may incorporate what is known as a non-solicitation provision, which would restrict the buyer's ability to hire an employee of the seller's business should the two parties not be able to close the transaction. On the other hand, an LOI may protect the buyer of a business by expressly conditioning its obligation to complete the transaction if it is unable to secure financing for the transaction.

reference

Full Form	Category
Lack of Idealism	Academic & Science
List of Items	Accounts and Finance
Lontras	Airport Code
Letter of Intent	Banking
Light Overseas Investments	Business
Logistical Outsourcing Inc	Business
Letter Of Indemnity	Business
Level Of Incompetence	Business
Limiting Oxygen Index	Chemistry
Lack Of Interest	Community
Local Operator Interface	Computer Hardware
Lancer Of Indonesia	General
Letters Of Interest	General
Letters Of Intent	General
La Oferta Irresistible	General
Letters of invitation	General
Letters of Inquiry	General
Letter of Introduction	General
Leyton Obsessional Inventory	General
Lodge of Instruction	General
Letter of Inquiry	General
Lives Of Internationals	General
Loss of Ignition	General
Letter of Interest	General
Liaison Officer Initiative	General
Level of information	General
Letter Of Invtation	General
Loss Of Imprinting	General
Length of Interview	General
Limit of Identifictation	General
Lack Of Integrity	General
Lord Of Illusions	General
Ladies Of Infinity	General
Legion Of Illusion	General
Leaders of Intellect	Governmental
Level Of Investigation	Governmental
Letter Of Interpretation	Governmental
Laughing On The Inside	Messaging
Letter of Invitation	Messaging
Letter of Instruction	Military and Defence
Loss of Input	Military and Defence
Loss On Ignition	Space Science
Lunar Orbit Insertion	Space Science
List of Illustrations	Space Science