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Enron Mail |
Sharon:
I'm on my way out of the office for an appointment but will be back around 4 or 4:30 Houston time. I'd like a quick chat this evening or tomorrow morning (before 11 am Houston, if possible). I understand that the dynamics of this deal were discussed by Russ and Jeff Kinneman/Sheila Glover. The Enron party is Enron North America Corp. ("ENA", formerly named "ECT") and the $25million Enron Corp. guaranty is for the purpose of securing payment of the 20%plus margin requirement for illiquid securities held by ENA in its Bear account ("stock loan account"). I'm not sure if other agreements are necessary and I was hoping that we could discuss. Feel free to email or call. Thanks for your help. Sara Shackleton Enron North America Corp. 1400 Smith Street, EB 3801a Houston, Texas 77002 713-853-5620 (phone) 713-646-3490 (fax) sara.shackleton@enron.com "Chernick, Sharon Confidential Memo-Counsel (Exchange)" <schernick@bear.com< 02/07/2001 01:17 PM To: "'sara.shackleton@enron.com'" <sara.shackleton@enron.com< cc: "Talento, Scott (Exchange)" <STALENTO@bear.com<, "Miron, Russel (Exchange)" <rmiron@bear.com< Subject: enhanced stock loan Sara: I have made some inquiry and verified that the Bear Stearns Stock Loan enhanced leveraged product is indeed what is under consideration. As promised, I have a brief step-by-step explanation of such a stock loan transaction, which is appended to this message. There are actually two possible scenarios: one where cash collateral is used for the stock loan, the other where actual securities are used as collateral. We understand that, at least initially, you will be using bonds as collateral. The Stock Loan Agreement is used in connection with our current form of Institutional Account Agreement which ECT may not have signed. I therefore also append that agreement to this message. I expect you waill wnat to review these attachments before we speak again. Again, as a reminder, I will be on vacation from Friday the 16th through the following week. If you would like to speak before hand, or if you have any questions regarding any of the documents, please let me know. Regards, Sharon <<Enhanced Stock Loan-explained.doc<< <<IAA_ 9-8-00rev_clean.doc<< - Enhanced Stock Loan-explained.doc - IAA_ 9-8-00rev_clean.doc *********************************************************************** Bear Stearns is not responsible for any recommendation, solicitation, offer or agreement or any information about any transaction, customer account or account activity contained in this communication. ***********************************************************************
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