We continue to analyze any rights that Citi or B of A may have to offset against monies on deposit with them.  We are looking into the prepays further (additional info  obtained today indicates that we continue to have significant outstanding prepays with Citi), other financing arrangements, trading contracts and account agreements with the banks. We will have all of the pieces pulled together this afternoon.   Regards,   Julia

 -----Original Message-----
From: 	Murray, Julia  
Sent:	Sunday, November  25, 2001 9:05 PM
To:	Haedicke, Mark E.; Bowen Jr., Raymond; Deffner, Joseph
Subject:	Prepays

From Julia Murray anad Carol St. Clair


As requested, we reviewed the Chase prepays to determine ratings trigger events. Upon a downgrade by S&P below investment grade, the collateral threshold under the margin agreement would be reduced from $10MM to zero. There is no Moody's downgrade trigger. In addition, Mary Perkins has advised that we do not have monies on deposit with Chase.  We are told that there are no outstanding Citibank prepays.

Julia Heintz Murray
Managing Director and General Counsel
Enron Wholesale Services
Enron Industrial Markets LLC
1400 Smith Street, EB3838
Houston, Texas  77002
Phone: 713/853-3439   Fax:  713/646-3393
julia.murray@enron.com