easy · Certified Financial Planner Investment Planning
A long-time client of Huang's planning firm offers to lend Huang $50,000 at a 6% interest rate to help fund a local office expansion. The loan will be fully documented and secured.
Is Huang permitted to accept this loan?
- Yes, provided the conflict of interest is disclosed and the client provides informed consent.
- No, because the client is not a family member and is not in the business of lending money.
- Yes, because the interest rate is a fair market rate and the loan is secured.
- No, unless the loan is for less than $25,000 and is repaid within one year.
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