makes sense to me...I know from trying to negotiate with smud on the weather 
deal that they need approval to post collateral.  I like the idea that they 
have 3 days to provide evidence that they are going to the board and then a 
further 7 to get it approved and posted. thanks.

 -----Original Message-----
From:  St Clair, Carol  
Sent: Wednesday, May 16, 2001 10:17 AM
To: Rohauer, Tanya
Subject: RE: SMUD EEI Master

Carol St. Clair
EB 3889
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com
----- Forwarded by Carol St Clair/HOU/ECT on 05/16/2001 10:16 AM -----


	Tracy Ngo/ENRON@enronXgate 05/16/2001 10:13 AM 	   To: Carol St 
Clair/HOU/ECT@ECT  cc:   Subject: RE: SMUD EEI Master


Given they are a muni, I am fine with this exception.  In practice, we have 
experienced situations with certain cp's where we have had to come up with 
certain margining exceptions.

WRT amendments, such amendments can be done within the same time period as 
well.  I think that we could add that the cp is required to provide a 
representation (perhaps an officer's certificate of some sort) stating that 
they are going to their Board for posting of the collateral.

We got that provision from another municipality.

Tracy

 -----Original Message-----
From:  St Clair, Carol  
Sent: Wednesday, May 16, 2001 7:11 AM
To: Ngo, Tracy
Cc: Rosman, Stewart
Subject: SMUD EEI Master

Tracy:
Are you sure that you are okay with extending the time to deliver collateral 
from 3 Business Days to 10 Business Days?  I have never seen us agree to that 
long of a time period?  What if Exposures change from the time that we 
request collateral and the time that they deliver it to us?  If all they are 
doing is posting cash or amending an LC, why would they need 10 Business 
Days?  Please call me.

Carol St. Clair
EB 3889
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com