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Enron Mail |
Marty: I will have a response to setoff shortly. With respect to the CSA
and calculation of the "Credit Support Amount," our change should not create any inconsistencies in the calculation of that amount among your counterparties since it would only change IF the calculation yielded a negative number. The only reason for "specifying otherwise" in Paragraph 13 is to capture the situation where the Pledgor MIGHT be holding Independent Amounts (if there are ever any specified in a particular Transaction) of the Secured Party as cushion (which is not meant to be returned until termination of Transactions) and subtraction of that amount would create a negative number when calculating the Credit Support Amount. By specifying that the Credit Support Amount will be "the higher of" the amount calculated (deemed to be zero if a negative number) or the sum of the Pledgor's Independent Amounts, the latter would prevail. This calculation method will make a difference if, for example, the Secured Party asks for a Return Amount when the Pledgor intends to retain any Independent Amounts as cushion (such that only Posted Credit Support exceeding the sum of the Independent Amounts will be returned). I hope this helps. Sara Marty_Oelmann@cargill.com on 04/18/2000 04:53:26 PM To: Sara.Shackleton@enron.com cc: Marty_Oelmann@cargill.com Subject: Re: ISDA Master Agreement between Enron and CGLI Hi Sara, Confirming or conversation, only 2 issues remain unresolved. 1. Please remove subclause (B) in Part 5(g) Setoff. As we discussed, this contemplates including all kinds of "obligations of any kind whatsoever" and it is our intent to include only Energy trading under this Agreement. 2. Please explain the reasoning for modifying the definition of "Credit Support Amount" in Paragraph 13(b)(C) of the Credit Support Annex. We would prefer to retain the intent of ISDA's definition to maintain consistency in the way this amount is determined among our counterparties. Thank you for all your assistance and I look forward to receiving execution copies of the Agreement if these two issues can be resolved. Best regards, Marty Oelmann ______________________________ Reply Separator _________________________________ Subject: ISDA Master Agreement Author: Sara.Shackleton (Sara.Shackleton@enron.com) at admpom01-unix-mime Date: 4/18/00 4:01 PM Marty: Also left you a voice mail. Are we ready to send execution copies? Sara
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