Subject: ISDA - Cross Default
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Fri, 26 May 2000 10:46:00 -0700 (PDT)

Mark

As mentioned at our trading meeting on Tuesday, we are putting together a 
tailored ISDA schedule for our banking counterparties with which we propose 
to trade credit transactions.

One issue we have revisited is whether the definition of Specified 
Indebtedness (which ties into the cross default provisions) should be 
expanded to cover derivatives transactions as well as the more conventional 
bank borrowings.  

We think there are arguments both ways on this, but wonder whether we have a 
"house view".  Since the definition is not expanded in our standard ISDA 
schedule, we assume that our preferred position is to exclude derivatives 
transactions from the cross default provisions of the ISDA.

Perhaps we can discuss this when you have a spare moment! Thanks

Kind regards.

Paul