Message-ID: <17219222.1075863200555.JavaMail.evans@thyme>
Date: Wed, 31 Oct 2001 08:31:13 -0800 (PST)
From: marie.heard@enron.com
To: alan.aronowitz@enron.com, morris.clark@enron.com, angela.davis@enron.com, 
	peter.del@enron.com, h..douglas@enron.com, n..gray@enron.com, 
	leslie.hansen@enron.com, marie.heard@enron.com, 
	brent.hendry@enron.com, t..hodge@enron.com, tana.jones@enron.com, 
	peter.keohane@enron.com, c..koehler@enron.com, 
	e-mail <.lech@enron.com>, pinto.leite@enron.com, 
	travis.mccullough@enron.com, lisa.mellencamp@enron.com, 
	harlan.murphy@enron.com, julia.murray@enron.com, 
	gerald.nemec@enron.com, david.portz@enron.com, 
	e-mail <.rick@enron.com>, tanya.rohauer@enron.com, 
	elizabeth.sager@enron.com, frank.sayre@enron.com, 
	sara.shackleton@enron.com, paul.simons@enron.com, 
	carol.st.@enron.com, steve.van@enron.com, john.viverito@enron.com, 
	credit <.williams@enron.com>
Subject: FW: Master Netting Agreements Reminder
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X-From: Heard, Marie </O=ENRON/OU=NA/CN=RECIPIENTS/CN=MHEARD>
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Please see Elizabeth's e-mail below.

 -----Original Message-----
From: 	Sager, Elizabeth  
Sent:	Wednesday, October 31, 2001 10:19 AM
To:	Heard, Marie
Subject:	Master Netting Agreements Reminder

Reminder - If you are working on a Master Netting Agreement, you also need to understand what type of entities are being included in the netted group.  On the power side, there are regulatory restrictions on a regulated utility from becoming a guarantor of the debts of unregulated companies;  accordingly,  an MNA with a regulated utility and other unaffiliated parties on its side will not work, particularly if you are posting collateral on a fully netted basis.  In this case, the only option would be to keep the underlying margining agreements in place (no new global collateral annex) and have the MNA only be a cross default and acceleration and  possible setoff (just in case the money is going the right way and/or just in case it works).  Mary is working on a new draft of the MNA to be used if we are not superceding the underlying margining terms. Thanks 

Elizabeth Sager
713-853-6349