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Enron Mail |
John:
Are there any other issues from your viewpoint? Carol St. Clair EB 3889 713-853-3989 (Phone) 713-646-3393 (Fax) carol.st.clair@enron.com ----- Forwarded by Carol St Clair/HOU/ECT on 06/05/2001 01:13 PM ----- boldham@reliant.com 06/05/2001 12:10 PM To: Carol.St.Clair@enron.com cc: Edward.Sacks@enron.com, janet-greene@reliantenergy.com Subject: Re: Update Carol: I would prefer to go to them with all the issues at one time. If you have any more issues you would like us to address, please forward and we can approach sureties all at once. If there are no more issues from you/ENRON please advise and we will go to sureties now. THX Bill Oldham Director, Insurance Risk Management Reliant Energy Incorporated Telephone No.713/207-3131 FAX No. 713/207-3251 email: bill-oldham@reliantenergy.com Carol.St.Clair @enron.com To: boldham@reliant.com cc: janet-greene@reliantenergy.com, Edward.Sacks@enron.com 06/05/01 09:04 Subject: Re: Update AM Bill: Thanks for the information. I need to take a closer look at Janet's language, particularly the "null and void" language to make sure that it covers all possible events of default under the Master Agreement. As to the Texas law issue, our ability to get comfortable from a legal standpoint will in large part be dictated by this issue. Is there anyway to get more certainty on this with the sureties? I understand that you don't want to go to them multiple times but this is a key issue for us. Let me know what you think. Carol St. Clair EB 3889 713-853-3989 (Phone) 713-646-3393 (Fax) carol.st.clair@enron.com boldham@relia nt.com To: carol.st.clair@enron.com cc: jkgreene@reliant.com 06/04/2001 Subject: Re: Update 03:35 PM Carol: The attached two e-mails are in response to your inquiry of 6-1-01. If you have any questions, let me know. Bill Oldham Director, Insurance Risk Management Reliant Energy Incorporated Telephone No.713/207-3131 FAX No. 713/207-3251 email: bill-oldham@reliantenergy.com ---- ----- Forwarded by Bill Oldham/ADM/HouInd on 06/04/01 10:19 AM ----- Michael_Herrod@a rs.aon.com To: boldham@reliant.com cc: Dan_Burton@ars.aon.com, John_Rathmell@ars.aon.com, 06/04/01 09:59 Kevin_Sparks@ars.aon.com, Margaret_Buboltz@ars.aon.com, AM Margaret_Gibson@ars.aon.com Subject: Re: Update In my opinion, the wording suggested by Janet Green should be acceptable. We will have to have this wording formally approved by the surety companies prior to issuance. I would like to avoid approaching the sureties until all questions have been addressed and all changes have been made. In regards the bonds being subject to Texas law, I do not see that as being a problem. We will address that with the sureties along with other potential changes. In response to previous email, neither Dan nor I know of an attorney that would be willing or able to write an opinion in regards the applicability of the Appleton Law. As discussed during the meeting, this law has nothing to do with the viability of an exisitng surety bond. If a surety issued a bond that was later found to be in violation of Appleton, they would be fined by the State of New York. It does not make the bond invalid. MJH ----- Forwarded by Bill Oldham/ADM/HouInd on 06/04/01 07:32 AM ----- Janet K Greene To: Bill Oldham/ADM/HouInd@HouInd 06/03/01 05:23 cc: PM Subject: Re: Update(Document link: Bill Oldham) What if we said: "if the Principal shall promptly and faithfully perform its obligations under the Confirm, which is a part of and governed by the Master Agreement, then this obligation shall be null and void" With respect to her second point, what if we again said "an Event of Default has occurred under the Confirm, which is a part of and governed by the Master Agreement"? I think she is trying to clarify in the language that the bond can be called for an Event of Default under the Master Agreement, which could have nothing to do with the Confirm - - - which is factually correct. Janet K. Greene Reliant Resources, Inc. 1111 Louisiana, Suite 4300 Houston, TX 77002 713-207-5732 fax: 713-207-0141 jkgreene@reliant.com Bill Oldham To: Carol.St.Clair@enron.com 06/01/01 09:27 cc: Edward.Sacks@enron.com, janet-greene@reliantenergy.com, AM Wendy.Conwell@enron.com, Bill T Hamilton/TTG/HouInd@HouInd, William Waller/ADM/HouInd@HouInd, Rex Clevenger/ADM/HouInd@HouInd Subject: Re: Update(Document link: Janet K Greene) Carol: Thankyou for the attached. I believe the governing law for each issuing surety will be the law where the surety is domiciled, but let me do some checking and confirm this. Also, will get back to you on your comments Re the language in our recommended bond form...probably Monday or Tuesday next week. Thanks for your continued efforts in this matter. Bill Oldham Director, Insurance Risk Management Reliant Energy Incorporated Telephone No.713/207-3131 FAX No. 713/207-3251 email: bill-oldham@reliantenergy.com Carol.St.Clair @enron.com To: bill-oldham@reliantenergy.com cc: janet-greene@reliantenergy.com, Edward.Sacks@enron.com, 06/01/01 09:02 Wendy.Conwell@enron.com AM Subject: Update Bill: I spoke with our outside counsel yesterday and we have some more follow up work that we need to do on our side. One issue that may be of some importance to us in our analysis is determining what the governing law of the surety bond will be for each issuer, and more importantly, whether we can have the bonds governed by Texas law. Can you answer this for me? Also, with respect to the form of the bond itself, as we mentioned at the meeting, the language in the third paragraph which states that "if the Principal shall promptly and faithfully provide the Firm energy as defined in the Confirm, hen this obligation shall be null and void," does not work for us. Has anyone come up with alternative language? Finally, with respect to the Notice of Claim, we would like for the certification to say something like, "an Event of Default has occurred under the Master Agreement" rather than tie it to a specific default under the Confirmation. Does that work for the sureties? I look forward to hearing from you. Carol St. Clair EB 3889 713-853-3989 (Phone) 713-646-3393 (Fax) carol.st.clair@enron.com
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