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Enron Mail |
Please note the 2 day LC timing being negotiated with Chase by finance.
Should we alter our Paragraph 13 to modify the ISDA CSA timing for provision of credit support when an LC is being provided? Cordially, Mary Cook Enron North America Corp. 1400 Smith, 38th Floor, Legal Houston, Texas 77002-7361 (713) 345-7732 (phone) (713) 646-3490 (fax) mary.cook@enron.com ----- Forwarded by Mary Cook/HOU/ECT on 04/25/2001 09:25 AM ----- Sarah Wesner/ENRON@enronXgate 04/25/2001 08:20 AM To: Joel Ephross/ENRON@enronXgate, dkeyes@velaw.com@SMTP@enronXgate, tyates@velaw.com@SMTP@enronXgate, ealderden@velaw.com@SMTP@enronXgate, Mary Cook/HOU/ECT@ECT cc: Subject: RE: LCs and ISDA I received a message from Chase this morning that they will move the 5 days to 2 days as long as their LC department is okay with it. According to our LC department, Chase is fine with it. I am just waiting for the internal parties to communicate this to one another within Chase but we can assume that it will be 2 days. -----Original Message----- From: Ephross, Joel Sent: Tuesday, April 24, 2001 6:14 PM To: 'dkeyes@velaw.com'; 'tyates@velaw.com'; 'ealderden@velaw.com'; Wesner-Soong, Sarah; Cook, Mary Subject: FW: LCs and ISDA Hi Mary. Thanks for the info. The attachment to the ISDA appears to be weighted against Enron [for instance, the 30 day provision in the force majeur provision], and in fact contains some provisions that I was trying to invalidate in drafting the LC Reimbursement Agreement. I will need to review some of the other references tonight. Can we make the form of LC more Enron friendly? Will need to discuss timing at more length. Here, the Issuer is Chase -- NY. We should discuss whether we can vary the standard -- I do not think we can count on obtaining next day issuance in the documentation [Chase may waive requirement in their discretion]. We are trying to obtain 2 day issuance now, but please realize that the initial bid from Chase is 5 days. -----Original Message----- From: Cook, Mary Sent: Tuesday, April 24, 2001 4:42 PM To: Ephross, Joel Subject: LCs and ISDA << File: isdacsa(02-14-01).doc << See end of attachment Letter of Credit Provisions and Form. Timing requirement for transfer of LC for margin under our standard time frame does not vary from the ISDA form which is: if collateral demand is made by "Notification Time" (10:00 am NY time) then cash or LC must be delivered by close of business on the next Local Business Day, if after Notification Time then cash or LC must be delivered by close of second Local Business Day. Local Business Day for this purpose is a day on which commercial banks are open for business in the place of the "relevant account." Relevant account should be considered to mean the place of the issuer. Cordially, Mary Cook Enron North America Corp. 1400 Smith, 38th Floor, Legal Houston, Texas 77002-7361 (713) 345-7732 (phone) (713) 646-3490 (fax) mary.cook@enron.com
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