Sara:
We have never gotten comfortable with the Canadian cash collateral issue.  
You may recall that Shari recently looked into this but her situation was 
limited to a particular counterparty.  I was never comfortable with the 
advice that I got from Blake, Cassells and would suggest that we follow up 
with stikeman which is who Shari worked with.  She may have some updated 
memos on this in the file she was working on (I think it was Duke).

Molly and I never talked about this.  Mark needs to pick someone who should 
be in charge.  Molly was never interested in meeting to talk globally about 
this but I think that a meeting with her and Bradford needs to occur.  Take 
care.  Got to go.  Hope to see you in about 2 weeks.

Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com



	Sara Shackleton
	08/03/00 01:31 PM
		 
		 To: Carol St Clair/HOU/ECT@ECT
		 cc: Mark Taylor/HOU/ECT@ECT
		 Subject: Cash collateral in Canada

Carol:  Hope all is well.  We are missing you every day.

(1)  On a "swap" related note, we have a Canadian party requesting the 
ability to post cash collateral to ENA.  Can you recall where we left off on 
the issue?  I seem to  remember conflicting advice (Peter's insistence upon 
the Stikeman memo and ENA simply not agreeing to accept cash) and uncertainty 
as to how ENA could perfect its interest and what law governs (in cash held 
in a U.S. account).

(2)  On a "credit" related note, I was forwarded the 7/24/00 Margin Exception 
Report (originally sent to your attention).  What were you doing to follow up 
on this report?  Yesterday, Mary gave me a copy of a "collateral letter" 
being sent by Molly Harris.  Did you speak with Mary about working on this 
project in your absence?

Edward Ondarza is moving to EBS.   Stephanie Panus starts on Monday.  That's 
all the news for now.
 
Talk to you soon.  Sara

P.S.  Can you send photos over the net?