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Enron Mail |
Mary,
Set forth below are the provisions that should be included in a margin agreement whereby ENA will borrow funds from a non-U.S. entity (i.e., ABN AMRO) and make payments of principal and interest pursuant to the borrowing. As you'll note, the language provides that ENA will only be required to make (and be liable for) payments of interest that are net of any U.S. withholding tax and, thus, ABN AMRO will bear the burden of any U.S. withholding tax. All payments under this Agreement shall be made without any deduction or withholding for or on account of any Tax unless such deduction or withholding is required by any applicable law, as modified by the practice of any relevant governmental revenue authority, then in effect. If a party is so required to deduct or withhold, then that party ("X") shall (a) pay to the relevant authorities the full amount required to be withheld promptly upon the earlier of determining that such deduction or withholding is required or receiving notice that such amount has been assessed against Y, (b) pay and be liable to Y for only the net amount owed after reduction for any Tax, and © promptly forward to Y an official receipt (or a copy thereof), or other documentation reasonably acceptable to Y, evidencing such payment to such authorities. "Tax" means any present or future tax, levy, impost, duty, charge, assessment or fee of any nature (including interest, penalties, and additions thereto) that is imposed by any government or other taxing authority in respect of any payment under this Agreement. Please contact me at ext. 35777 with any questions. Best regards, Jeff MARY COOK 07/14/2000 11:18 AM To: Mark Taylor/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT cc: Jeff Blumenthal/HOU/ECT@ECT, Jason Peters/Corp/Enron@Enron Subject: Margin Lines: Bank One and ABN Bank One Line is closing today, with give up agreement to be finalized early next week. If there is any particular "file" processing for credit lines applicable to this group, please advise. Otherwise, I will have file with originals set up and provided to Kay Young for central file room. ABN further comments are due Monday and phone conference indicates very few issues. Should close next week. By copy to Jeff, please provide tax comments on ABN on Monday. Thank you. Mary
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