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client agreed that the investment was entirely at the client's
risk. The client agreed:
(a) "to indemnify and hold * * * [LTD] harmless from and to
pay * * * [LTD] promptly on demand any and all losses arising"
from an investment;
(b) that "* * * [LTD] shall not be liable for any error of
judgment or for any loss suffered by the Client in connection
with the subject matter of the * * * [investment management]
Agreement";
(c) that to the extent LTD acted as attorney in fact for
the client, it was for the client's "account and risk"; and
(d) that to the extent the client placed funds in excess of
FDIC or FSLIC insurance at any one bank (through LTD or
otherwise) "the client's investments may not be fully covered by
such insurance."
LTD was also authorized by each client to pool that client’s
funds with other clients’ funds in order to obtain higher rates
of return. In authorizing LTD to pool funds, a client agreed
that "* * * [LTD] shall have the power to maintain, commingle, or
transfer Assets in omnibus accounts in the name of * * * [LTD] as
attorney in fact for the client and other clients having an
interest in the omnibus account."
During 1986, the discretionary authorization signed by each
client was changed to include the provision that
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