This provision is an election which we have added to the Schedule for 
governmental entities.  I believe that it is intended to eliminate any 
confusion that historically arose during the debate between "First Method" 
(one-way payments) and "Second Method" (two-way payments) for Early 
Termination purposes.  Although I can't find a good reason to continue to use 
this provision with an ISDA (except that it emphasizes the point), I can 
understand why we may have added it to a pre-ISDA agreement with a 
governmental.  The only example that I could locate was our September 21, 
1995 Master Agreement with Reedy Creek Improvement District.  For those of 
you who have never seen this form, it was one of the two types of master 
agreements developed by ECT before we became conversant with ISDA.  Because 
these forms didn't contemplate municipal counterparties, we had to add many 
of the ISDA U.S. Municipal Counterparty Schedule provisions.  The Part 
5(b)(k) provision originally appeared in this early agreement.  It was 
included in the "Event of Change" section [5F(4)] (which is tantamount to the 
ISDA concept of "Illegality", a "Termination Event").  I think it was 
probably included because in the ISDA, Second Method is the automatic payment 
method if the parties fail to make a specific designation for Early 
Termination purposes, but there isn't a comparable provision in the old ECT 
form.