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Enron Mail |
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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.
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