Frank and Tom:

I believe the instructions below quoting EOL and Credit are incorrect.

If the credit status of a counterparty changes and they "click" to execute an 
online GTC, then our Global system should reflect the current online GTC and 
not the previous online GTC. 

Right?









Cyndie Balfour-Flanagan@ENRON
08/08/2000 06:17 PM
To: Linda S Bryan/HOU/ECT@ECT, Anthony Campos/HOU/ECT@ECT, Karen 
Lambert/HOU/ECT@ECT, Stacey Richardson/HOU/ECT@ECT, Bridgette 
Anderson/Corp/Enron@ENRON, Chris Mendoza/HOU/ECT@ECT, Susan 
Elledge/NA/Enron@Enron
cc: Karen Lambert/HOU/ECT@ECT 
Subject: Online GTCs

Just an FYI. Per EOL & Credit, if we already have an Online GTC w/Collateral 
& the credit status of the counterparty is amended so that they no longer 
require collateral - - - - - there is no need to establish a new OnLine GTC. 
The OnLine GTC w/Collateral remains the preferred online GTC since a 
collateral agreement was previously in place. HOWEVER, the reverse DOES NOT 
hold true - - - - If credit status is amended so that the counterparty does 
require collateral - - - - a new GTC w/Collateral MUST BE established. Rule 
of thumb, collateral is better than no collateral if it has ever been 
required.

In summary, if you receive a GTC request for an OnLine GTC without collateral 
be sure to check available contracts for an Online GTC w/Collateral first. If 
one is already in place, DO NOT set-up a new GTC. Notify Deal Validation to 
use the OnLine GTC w/Collateral according to the above mentioned note.

Thank you!
Cyndie