No, in general there is a netting issue with French counterparties.  The 
"quick fix" is to only permit ONE Transaction using a deemed ISDA.  The 
broader issue to be resolved is that one of the parties must be a "financial 
institution" under French law.  We tried to push ECT into that defintion, but 
without success.  The next step is to require  an opinion from outside 
counsel identifying our counterparty as that financial institution.  
SS            
ps - Tanya is well aware of the situation


   
	
	
	From:  Mark - ECT Legal Taylor                           09/27/99 10:00 AM
	

To: Sara Shackleton/HOU/ECT@ECT
cc:  
Subject: New Deals

I'm pretty sure SITA is a French company.  Have we decided that French 
counterparties are ok?
---------------------- Forwarded by Mark - ECT Legal Taylor/HOU/ECT on 
09/27/99 09:59 AM ---------------------------


Tanya Rohauer
09/27/99 09:24 AM
To: Marie Heard/HOU/ECT@ECT, Susan Flynn/HOU/ECT@ECT, Susan 
Bailey/HOU/ECT@ECT, Mark - ECT Legal Taylor/HOU/ECT@ECT
cc: Jarrod Cyprow/HOU/ECT@ECT 
Subject: New Deals

Please prepare a deemed ISDA for the SITA deal.  Please forward to Jarrod 
Cyprow on the confirm desk. Please note the only credit specification is a 
cross default to third party debt.  Let me know if you have questions.

Thanks,
Tanya


---------------------- Forwarded by Tanya Rohauer/HOU/ECT on 09/27/99 09:19 
AM ---------------------------


	Heather Alon
	09/24/99 02:30 PM
	
To: Dale Neuner/HOU/ECT@ECT, Melba Lozano/HOU/ECT@ECT, Scott 
Pleus/HOU/ECT@ECT, Jeff Harbert/HOU/ECT@ECT, Lisa Berg/HOU/ECT@ECT, Tanya 
Rohauer/HOU/ECT@ECT, Michael Nguyen/HOU/ECT@ECT, Jarrod Cyprow/HOU/ECT@ECT, 
Ana Correa/HOU/ECT@ECT, Greg Jay Martin/HOU/ECT@ECT
cc:  
Subject: New Deals