Laurel:

Can you help me respond to Susan's e-mail?  I think her question is did the below transaction remain on ECT's US books or was it back to backed with the UK?  I think there is a tax question.

Thanks!

Marie

 -----Original Message-----
From: 	Musch, Susan  
Sent:	Tuesday, July 24, 2001 9:25 AM
To:	Heard, Marie
Subject:	Credit Transaction in 2000

Marie,

I obtained the details from our London Tax Dept. this morning regarding the credit derivatives transaction entered into by Enron US in 2000 for its US operations.  The details are as follows:

Enron party:  ECT Investments Inc.
Counterparty:  Deutschebank
Buyer of protection:  Enron
Company for which protection is sought:  Loaise Corp. [spelling???]
Notional principal amount:  $4 MM
Commencement date:  July 19, 2000
Termination date:  July 19, 2005

Can you confirm that this transaction took place and remained on the books of our US operations?  I really appreciate your help with this.

Best regards,
Susan