Yes, it does.  Thanks so much.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com



	Cris Sherman
	02/22/2001 07:48 AM
		 
		 To: Sara Shackleton/HOU/ECT@ECT
		 cc: 
		 Subject: Rep Agreement

Sara, in the interest of time this morning, I thought  I would send a quick 
e-mail. I have read the appendix to the repo agreement and think it is OK.  
No accounting issues, I think they just want to address the substitution 
mechanics.  Technically, repo transactions are FAS 125 transactions (sales of 
financial assets), so I presume that is why the "FAS 125" is noted at the top 
of the page (I don't believe it is necessary - what value does it add?).  I 
think the issue is one for Treasury  - are we OK with the counterparties 
ability to terminate the contract if we do not agree to the replacement 
(substituted) securities? Hope this helps.