Re: Alberta pre-pay collateral

---------------------- Forwarded by Soma Ghosh/HOU/ECT on 09/20/2000 10:27 AM
---------------------------

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