Message-ID: <23270485.1075844806765.JavaMail.evans@thyme>
Date: Tue, 3 Apr 2001 02:05:00 -0700 (PDT)
From: mark.taylor@enron.com
To: peter.keohane@enron.com
Subject: Re: Cash Collateral
Cc: brent.hendry@enron.com, carol.clair@enron.com, chris.gaffney@enron.com, 
	greg.johnston@enron.com, mark.powell@enron.com, mary.cook@enron.com, 
	russell.diamond@enron.com, sara.shackleton@enron.com, 
	tana.jones@enron.com, william.bradford@enron.com
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Sounds like a great idea.  a couple of questions:
Can we convert the draft into cash and still maintain our security interest?  
If not, can we get the bank to somehow guarantee that the funds will be there 
- in the US that would require either certification by the bank of the 
customer's draft or the issuance of an actual bank or cashier's check.



	Peter Keohane
	04/02/2001 07:02 PM
		 
		 To: Mark Taylor/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Brent 
Hendry/NA/Enron@Enron, Mary Cook/HOU/ECT@ECT, Carol St Clair/HOU/ECT@ECT, 
Tana Jones/HOU/ECT@ECT, William S Bradford/HOU/ECT, Russell Diamond/HOU/ECT, 
Tanya Rohauer/HOU/ECT
		 cc: Greg Johnston/CAL/ECT@ECT, Mark Powell/CAL/ECT@ECT, Chris 
Gaffney/TOR/ECT@ECT
		 Subject: Cash Collateral

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.