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Enron Mail |
Mark,
Per a conversation we had a while ago, one of our traders wants a copy of a traditional isda and the industrial master agreement. Could I come pick up some copies from you? Thanks, Kim 35463 ---------------------- Forwarded by Kim Stanley/NA/Enron on 11/13/2000 09:34 AM --------------------------- From: Kevin O'Donnell 11/13/2000 10:34 AM To: Kim Stanley/NA/Enron@Enron cc: Subject: Re: ISDAs for Trading (Financial Transactions) Kim would it be possible to get copies of 1 and 2 for a customer ? thanks beforehand KO'D Kim Stanley 10/19/2000 02:49 PM To: Greg Hermans/Corp/Enron@Enron, Kevin O'Donnell/NA/Enron@Enron, Sean Keenan/HOU/ECT@ECT, Rahul Seksaria/Corp/Enron@ENRON cc: Scott Mills/HOU/ECT@ECT Subject: ISDAs for Trading (Financial Transactions) Team, I spoke with Mark Taylor concerning ISDA's. According to him, there are three possibilities we can use, dependent upon counterparty: 1) Traditional ISDA. According to Mark, most large and/or international companies already have these in place in relation to their interest rate and currency hedging programs. As long as we obtain a contact in their Treasury organization, this part of the transaction can be handed off (to them). While this is the most complicated agreement, it is very flexible and offers the best legal protection. 2) The Industrial Master Agreement. This agreement is for smaller, domestic companies who are not sophisticated borrowers. This document is around 6 pages in length and is used to cover tangible commodity financial transactions (i.e. steel, gas, NOT weather derivatives). It is written in "plain english", but is restricted to situations in which the counterparty is domestic (exception: our candian division could transact with a canadian company) 3) The Omnibus Agreement. Legal does not like to use this agreement because it doesn't afford "enough" legal protection (it's never been tested in court where multiple transactions with the counterparty were concerned). It looks like a confirm with a legal annex stapled to the back and is used in situations where a master agreement has not been signed. Otherwise, Mark thinks we look good in terms of legal documentation (at least from the financial side). Kim
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