Message-ID: <32618360.1075844488668.JavaMail.evans@thyme>
Date: Wed, 20 Sep 2000 03:28:00 -0700 (PDT)
From: soma.ghosh@enron.com
To: sara.shackleton@enron.com, catherine.clark@enron.com, 
	brian.kerrigan@enron.com
Subject: Re: Alberta pre-pay collateral
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---------------------- Forwarded by Soma Ghosh/HOU/ECT on 09/20/2000 10:27 AM 
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Cris Sherman
09/20/2000 03:50 PM
To: Soma Ghosh/HOU/ECT@ECT
cc:  
Subject: Re: Alberta pre-pay collateral  

I am fine w/ the use of a letter of credit from an accounting perspective.  I 
am sure the treasury people understand the effect of the loc on their 
available credit lines.  By the way. how much will the loc be for?



Soma Ghosh
09/20/2000 09:32 AM
To: Cris Sherman/HOU/ECT@ECT
cc: Sara Shackleton/HOU/ECT@ECT, Catherine Clark/HOU/ECT@ECT, Brian 
Kerrigan/HOU/ECT@ECT 
Subject: Alberta pre-pay collateral

Cris,

Following up on our conversation yesterday, I would be grateful if you would 
please confirm that from an accounting perspective we can use L/C's as 
collateral within our proposed structure. 

Having spoken with Legal & Credit, I understand that the use of cash as 
collateral creates difficulties under Canadian bankruptcy law regarding title 
to security & rights of set-off, therefore use of L/Cs would be the preferred 
route.

Sara, can we revert to using L/C as collateral within docs. 

Many thanks,

Soma