Subject: Cash Collateral
From: [email-masked]
To: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Mon, 2 Apr 2001 11:02:00 -0700 (PDT)

Greg Johnston may have a solution to the limitation on Canadian cash 
collateral.  Without getting into detail, a security interest in an 
"instrument" can be perfected by possession under the Personal Property 
Security Act, and an "instrument" includes a bank draft.  If counterparties 
were to provide bank drafts on the same terms as they provide LCs we could 
rely on perfection by possession.  Is this something we should investigate 
further?  Peter.