Thanks for this memo -- definitely comforting for the vast majority of our 
swap business.  I think the additional interesting question is whether or not 
we lose the benefit of the special treatment under the bankruptcy code when 
we enter into cross-product (i.e. physical and financial products) netting 
and joint credit support arrangements.  If we net all of our trading 
exposures under multiple agreements (swap agreements and gas, power, steel, 
coal, etc. trading agreements) to determine how much credit support should be 
posted and then only ask for a single LC that supports the whole shebang, do 
we lose this protection since arguably we are no longer just "under a swap 
agreement?"  Would you like me to ask Emory to expand?



	Julia Murray
	05/24/2001 06:28 PM
		 
		 To: Mark Taylor/HOU/ECT@ECT
		 cc: 
		 Subject: Letters of Credit; Preference; Swap Transactions

fyi


Julia Heintz Murray
Managing Director and General Counsel
Enron Wholesale Services
Enron Industrial Markets LLC
1400 Smith Street, EB3838
Houston, TX  77002
(713) 853-4794
Fax:  (713) 646-3393
julia.murray@enron.com

----- Forwarded by Julia Murray/HOU/ECT on 05/24/2001 06:28 PM -----

	"Ireland, Emory" <eireland@foleylaw.com>
	Sent by: "Steiner, Judith A." <JSteiner@foleylaw.com>
	05/24/2001 11:36 AM
		 
		 To: "'julia.murray@enron.com'" <julia.murray@enron.com>
		 cc: 
		 Subject: Letters of Credit; Preference; Swap Transactions


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