Re: Credit Support Annex

Can't thank you enough!

Karen

From: Tana Jones@ECT on 05/21/2001 10:17 AM
To: Karen A Cordova/HOU/EES@EES
cc: Marianne Castano/HOU/EES@EES, James E Keller/HOU/EES@EES
Subject: Re: Credit Support Annex

Attached is "Annex B.doc" which we use to prepare Annex B which contains the
credit provisions we attach to a Confirmation when such is requested for
omnibus financial confirmations. About mid-way through the US Annex B is
about 4 selections of collateral annexes depending on whether the credit is
one-way or two-way and whether the collateral requested is letters of credit
only or letters of credit and cash. Following that is form of letter of
credit. We have an Annex B form for US counterparties and Canadian
counterparties. I have attached both. The law in Canada currently does not
favor taking cash in Canada and WE DO NOT TAKE CASH (this obviously is quite
problematic for us!). Our current advice from Canadian counsel is that Cash
must be perfected in a way similar to filing a UCC. The Canadian and US
lawyers are re-reviewing this situation and I will let you know when/if this
advice changes.

Karen A Cordova@EES
05/21/2001 10:00 AM

To: Tana Jones/HOU/ECT@ECT
cc:
Subject: Credit Support Annex

Tana -

Does a Credit Support Annex exist for transactions perfected on the long form
(omnibus) confirmation? Is there such an animal? If you have something like
that, can I get a copy?

Thanks again, Karen