Please note the 2 day LC timing being negotiated with Chase by finance.  
Should we alter our Paragraph 13 to modify the ISDA CSA timing for provision 
of credit support when an LC is being provided?


Cordially,
Mary Cook
Enron North America Corp.
1400 Smith, 38th Floor, Legal
Houston, Texas   77002-7361
(713) 345-7732 (phone)
(713) 646-3490 (fax)
mary.cook@enron.com
----- Forwarded by Mary Cook/HOU/ECT on 04/25/2001 09:25 AM -----

	Sarah Wesner/ENRON@enronXgate
	04/25/2001 08:20 AM
		 
		 To: Joel Ephross/ENRON@enronXgate, dkeyes@velaw.com@SMTP@enronXgate, 
tyates@velaw.com@SMTP@enronXgate, ealderden@velaw.com@SMTP@enronXgate, Mary 
Cook/HOU/ECT@ECT
		 cc: 
		 Subject: RE: LCs and ISDA

I received a message from Chase this morning that they will move the 5 days 
to 2 days as long as their LC department is okay with it.  According to our 
LC department, Chase is fine with it.  I am just waiting for the internal 
parties to communicate this to one another within Chase but we can assume 
that it will be 2 days.  

 -----Original Message-----
From:  Ephross, Joel  
Sent: Tuesday, April 24, 2001 6:14 PM
To: 'dkeyes@velaw.com'; 'tyates@velaw.com'; 'ealderden@velaw.com'; 
Wesner-Soong, Sarah; Cook, Mary
Subject: FW: LCs and ISDA

Hi Mary. Thanks for the info. The attachment to the ISDA appears to be 
weighted against Enron [for instance, the 30 day provision in the force 
majeur provision], and in fact contains some provisions that I was trying to 
invalidate in drafting the LC Reimbursement Agreement. I will need to review 
some of the other references tonight. Can we make the form of LC more Enron 
friendly?

Will need to discuss timing at more length. Here, the Issuer is Chase -- NY. 
We should discuss whether we can vary the standard -- I do not think we can 
count on obtaining next day issuance in the documentation [Chase may waive 
requirement in their discretion]. We are trying to obtain 2 day issuance now, 
but please realize that the initial bid from Chase is 5 days.


 -----Original Message-----
From:  Cook, Mary  
Sent: Tuesday, April 24, 2001 4:42 PM
To: Ephross, Joel
Subject: LCs and ISDA

 << File: isdacsa(02-14-01).doc >> See end of attachment Letter of Credit 
Provisions and Form.

Timing requirement for transfer of LC for margin under our standard time 
frame does not vary from the ISDA form which is:

if collateral demand is made by "Notification Time" (10:00 am NY time) then 
cash or LC must be delivered by close of business on the next Local Business 
Day, if after Notification Time then cash or LC must be delivered by close 
of  second Local Business Day.  Local Business Day for this purpose is a day 
on which commercial banks are open for business in the place of the "relevant 
account."  Relevant account should be considered to mean the place of the 
issuer.




Cordially,
Mary Cook
Enron North America Corp.
1400 Smith, 38th Floor, Legal
Houston, Texas   77002-7361
(713) 345-7732 (phone)
(713) 646-3490 (fax)
mary.cook@enron.com