There is no documentation to evidence this, it is an operation of law.  Being 
a legal incorporated entity means you are embodied as a legal entity after 
filing or creating certain organizational documents under state or federal 
laws (you could be a corporation, partnership,  governmental entity or other 
type of entity).   A division is not a separate legal incorporated entity.   
It is one and the same entity as the incorporated entity.   It is a "dba"  
(which means "doing business as") or "assumed name" for an incorporated 
entity. Any division of an incorporated entity can, and usually should, trade 
under the same master as the incorporated entity (unless the company gives us 
some reason elsewise).  Frequently, the dealmakers at the company may not 
understand that a division and incorporated entity are one and the same, or 
there may be a corporate policy that prohibits their trading from being 
aggregated.That is why we always want the name of the incorporated entity as 
part of the counterparty name when we transact with a division.  Examples 
might be "Tana Jones Inc., acting through its TLJ Company Division" or "Tana 
Jones Inc. d/b/a TLJ  Company" or "TLJ Company, a division of Tana Jones 
Inc."  Frequently, the dealmakers at the company may not understand that a 
division and incorporated entity are one and the same (and we may have to 
talk to them), or there may be a corporate policy that prohibits their 
trading from being aggregated with the corporate entity.  Legal and/or Credit 
should direct you when a division should trade under the legal entity's 
master.  

P.S. Susan Flynn is on an extended leave of absence.




	Stacey Richardson
	07/20/2000 05:36 PM
		 
		 To: Tana Jones/HOU/ECT@ECT
		 cc: Anthony Campos/HOU/ECT@ECT, Bridgette Anderson/Corp/Enron@Enron, Karen 
Lambert/HOU/ECT@ECT, Linda S Bryan/HOU/ECT@ECT, Susan Flynn/HOU/ECT@ECT, 
Frank L Davis/HOU/ECT@ECT, Stephanie Sever/HOU/ECT@ECT
		 Subject: Clarification of Cargill issue

Tana,

I'm hoping you can clarify some information I received second-hand on 
Cargill, Incorporated, and Cargill Energy, a division of Cargill, 
Incorporated.   It is my understanding that Cargill Energy, a division of 
Cargill, Incorporated, is allowed to trade under the ISDA (contract  
96043502) between Cargill, Incorporated and ENA.   Based on the information 
in the Legal Financial Trading Agreement database, there is no information to 
indicate that this affiliate is also covered by the Cargill, Incorporated 
master .  Also, the email from Susan Flynn  does not include any information 
on additional parties covered under this contract.  Finally, Part 4(b) of the 
schedule to the agreement specifies that for Section 10(c) of the contract , 
neither party is a multibranch party.  This is all the information that 
Anthony Campos has received to date on this contract.  Based on this 
information, and from previous requests from Legal for Global Contracts to 
refer any interpretations to Legal, the Global Contracts group could not make 
any assumptions regarding other counterparties not specifically listed on the 
contract or schedules.  

I wanted to verify if what I had heard about Cargill Energy, a division of 
Cargill, Incorporated, was correct and to obtain the pertinent documentation 
if so.  Also, does Legal have any specific "policies" regarding affiliate 
relationships?  Is there any documentation we should have been aware of?

I just want to make sure that there are no EOL issues in the future and that 
we have not misinterpreted any information.  Please let me know how Legal 
handles such an issue and what actions Global Contracts can expect.

As usual, thanks for you help and patience.

Stacey x30569